beyondbrics

A wave of risk aversion weighed on Latin American markets today as investors worried about the state of the global economy. Disappointing data from the US on Thursday continued to fuel fears of a double-dip recession in one of Latin America’s largest trading partners.

“Risk appetite remains in flux”, cautioned currency strategists at Brown Brothers Harriman.

EM saw a choppy week, as early risk off trading after weak Japan GDP data gave way to risk on mid-week and then back to risk off as the week ended due to weak US data and as concerns about peripheral euro zone flared up.  We remain nervous about risk appetite, as increased concerns about US and global growth are likely to linger, as are worries about Greece and the periphery.

In Brazil, the Bovespa gave up 0.31 per cent to close at 66,677.16, but gained 0.62 per cent for the week.

Miners and steelmakers fell as commodity prices dipped. Iron ore miner MMX fell 3.44 per cent to 12.36 reais while Vale lost 1.25 per cent to 43.35 reais. Usiminas, the steelmaker, gave up 1.83 per cent to 46.20 reais after Barclays cut its rating.

State-controlled oil company Petrobras closed flat at 26.78 reais after seesawing through the session as crude prices dipped.

Mexico’s IPC pared earlier losses to close up 0.43 per cent at 32,291.67, a gain of 0.6 per cent for the week.

Banking stocks gained, with Grupo Financiero Banorte rising 2.13 per cent to 47.84 pesos.

América Móvil, the wireless company, gained 0.73 per cent to 31.66 pesos while Grupo Televisa, the entertainment company, rose 1.84 per cent to 49.26 pesos.

But the index’s gains were limited by retailer Kimberly-Clark de México, which fell 1.06 per cent to 78.44 pesos, and cement company Cemex, which lost 0.37 per cent to 10.84 pesos.

In Argentina, the Merval rose 0.4 per cent to 2,438.97, up 3 per cent for the week.

Chile’s IPSA slipped 0.2 per cent to 4,513.31 but gained 1.14 per cent for the week.

Equities
Brazil: Bovespa down 0.31% at 66,677
Mexico: IPC up 0.43% at 32,292
Chile: IPSA down 0.20% at 4,513
US: DJIA down 0.56% at 10,214
US: S&P 500 down 0.37% at 1,072

Currencies
Brazilian real stronger at 1.75 (from 1.76) to the dollar
Mexican peso weaker at 12.75 (from 12.70) to the dollar
Colombian peso stronger at 1,800 (from 1,821) to the dollar
Chilean peso stronger at 501.50 (from 507.25) to the dollar

Commodities
Brent Crude (ICE) down 1.16% at $74.43 a barrel
Light Crude (Nymex) down 1.32% at $73.45 a barrel
100oz gold (Comex) down 0.49% at $1,228 per troy ounce
Copper (Comex) down 0.77% at $329.20 a pound