beyondbrics

Latin American markets struggled on Thursday amid renewed fears over global growth. Stocks finished the session slightly higher, though Brazil’s commodity producers fell on signs China’s economy is cooling off. Mexico’s peso slipped against the dollar, while Brazil’s real was flat and the Chilean and Colombian pesos strengthened.

“If US growth concerns remain in play, we believe the peso will continue to be hurt disproportionately within [emerging markets]”, wrote Win Thin, senior currency strategist at Brown Brothers Harriman. “While [emerging market] currencies have been doing well so far in Q3, rising concerns about US and China growth could lead to a bout of profit-taking.”

• In Brazil, the Bovespa finished up 0.02 per cent at 63,489.37, led by airlines, homebuilders and food producers. But commodities producers limited gains on fears over the economy of China, Brazil’s largest trading partner.
• Gol, the airline, rose 3.12 per cent to 24.10 reais while Tam added 2.5 per cent to 28.75 reais.
• Homebuilder PDG Realty rose 2.75 per cent to 17.93 reais, Rossi Residencial gained 2.44 per cent to 15.52 reais and Cyrela was up 1.95 per cent to 22 reais.
• Beef producer JBS added 2.32 per cent to 8.39 reais and poultry processor Brasil Foods gained 2.28 per cent to 24.68 reais.
• But credit card processor Redecard weighed on the index, falling 2.88 per cent to 26.95 reais.
• Steelmakers were also lower, with CSN falling 2.6 per cent to 26.25 reais and Usiminas down 1.33 per cent to 48.20 reais. Iron ore miner Vale lost 1.04 per cent to 37.90 reais.
• In Mexico, the IPC rose 0.23 per cent to 32,381.06.
• Grupo México, the copper miner, gained 3.62 per cent to 32.34 pesos on higher copper prices, while homebuilder Urbi added 1.29 per cent to 25.10 pesos.
• But Gruma, the corn flour and tortilla processor, limited gains, falling 3.15 per cent to 19.97 pesos.

Americas
Chile: IPSA up 0.17% at 4,220
US: DJIA down 0.07% at 10,359
US: S&P 500 up 0.12% at 1,096

Currencies
Brazilian real flat at 1.76 (from 1.76) to the dollar
Mexican peso weaker at 12.76 (from 12.71) to the dollar
Colombian peso stronger at 1,868 (from 1,871) to the dollar
Chilean peso stronger at 529.80 (from 532.35) to the dollar

Commodities
Brent Crude (ICE) down 0.87% at $76.10 a barrel
Light Crude (Nymex) down 0.25% at $76.85 a barrel
100oz gold (Comex) up 0.12% at $1,210 per troy ounce
Copper (Comex) up 0.25% at $301.25 a pound