Markets from Mexico to Argentina took a hammering on Thursday in a wave of global selling after poor US jobs and inflation data deepened the gloom hanging over the world economy and the price of copper, a key export in Chile and Peru, fell on concerns that lower growth will stifle demand in the US and China.

Bonds, stocks and currencies tumbled across the region as, in addition to the poor numbers, business activity index released by the Philadelphia Fed fell to -30.7 in August, the negative indicating a contraction, from 3.2 in July. That was its lowest level since the 2009 recession – highlighting market fears that another recession is nigh. Morgan Stanley said the US, and Europe – key Latin American export destinations, were “dangerously close” to slipping back into recession. Continue reading »