MercoPress. South Atlantic News Agency

Latin American markets react positively on growing confidence in the region

In the three leading economies, Brazil, Mexico and Argentina, Bovespa, IPC and Merval were up

Latin American markets edged up on Tuesday, albeit uneasily, after data showed the US services sector unexpectedly picked up steam in August and growing confidence that the region is prepared to withstand global turbulence.

The MSCI Latin American stock index gained 0.45%, bouncing back a day after its biggest one-day percentage loss in more than two weeks.

Despite the rebound, traders said it looked like a recovery in equities since late August had been derailed and further losses were likely.

Offsetting the gloom, an index of US service sector activity rose, suggesting consumers were holding up better than some had thought in what appears to be stalling US economy.

Mexico's IPC stock index bounced back from sharp losses in the last session. The index gained 0.87% to 34,173 points as telecommunications giant America Movil rose 1.49% and Wal-Mart de Mexico added 1.41%. The IPC 3.6% drop in the previous session broke through key support levels that could bode for more losses.

Meanwhile, Brazil's benchmark Bovespa index jumped 1.17%, also recovering from big losses on Monday, as mining giant Vale gained 1% and clothing retailer Lojas Renner was up 4.3%.

Buenos Aires stocks reacted positively on Tuesday with the Merval benchmark index moving up by 1.2% to 2,816.83 points.

Likewise Argentina's country-risk dropped 0.3% to 780 basis points in the JP Morgan EMBI index.

The US currency traded for AR$4.20/AR$4.24, remaining unchanged compared to the previous closing price in the main banks and bureau de change in Buenos Aires downtown.

In Chile the IPSA index of the main 40 shares finished up 0.09% reaching 4.111,48 units.

However in Peru, the Lima stock exchange fell for the third consecutive round pushed by foreign markets and a slump in metal prices, the country’s main exports.

The index was down 0.88% and closed at 19.931,29 points and the index for the leading stocks was also down 0.69%.

So far this year the Lima market has lost 14.7%.

However In Colombia the IGBC index recovered and closed at 13.429,43 points
equivalent to a 1.66% increase compared to Monday that was also down 1.84% over the previous Friday. IBGC is down 13.34% since the beginning of the year.
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