|
Latin American markets had a mixed session, with Brazilian shares easing on profit-taking, political turmoil and soft economic data, while upbeat sentiment about select Mexican and Argentinean stocks lifted those markets. Robust oil prices remained a focus as well.
Brazil's benchmark Bovespa Index fell 82.64 points, or 0.29%, while Mexico's benchmark Bolsa Index climbed 243.40 points, or 1.71%. Argentina's Merval Index added 31.29 points, or 1.98%.
Brazilian shares eased back in profit-taking, amid firm oil prices and disappointing surplus data. Brazil posted a foreign trade surplus of US$ 3.67 billion in August, bringing the year-to-date surplus to US$ 28.35 billion.
Exports reached US$ 11.35 billion, while imports totaled US$ 7.68 billion. Analysts had predicted higher surplus figures, according to news reports.
Developments were grim on the political front as well. A House panel voted unanimously to recommend the expulsion of Brazilian Labor Party congressman Roberto Jefferson from the chamber of deputies, for his alleged participation in an irregular campaign finance scheme orchestrated by members of the governing Workers' Party.
Another panel was expected to name at least 18 congressmen who should be investigated for their alleged role in the campaign finance scheme.
In company news, on the legal front, a court lifted its injunction preventing airline Varig from selling its cargo unit. The sale still requires the authorization of Rio de Janeiro's 8th corporate court, which is handling the debt restructuring.
Mexican issues, meanwhile, rose strongly on bargain-hunting, despite mixed economic and corporate reports in the U.S. The U.S. ISM manufacturing index fell to 53.6 in August from 56.6 the prior month, below targets of 57.0.
Also, consumer spending climbed an in-line 1% in July, but income grew a softer-than-anticipated 0.3%. Also of note, news that President Bush had asked to meet with Federal Reserve chief Alan Greenspan generated speculation the central banker might be asked to pause the Fed's rate tightening campaign.
On the corporate front in the U.S., giant Wal-Mart's same-store sales for August grew less than expected.
In domestic stock action, Cemex continued to show strength, following the U.S.'s preliminary decision earlier in the week to cut penalty tariffs against the Mexican cement company.
Some analysts also attributed the stock's outperformance to speculation the company will see higher demand for repair work in areas hit by Hurricane Katrina.
Separately, broadcaster Televisa lured buyers after an investment bank raised its rating to "buy" from "hold," saying the company will likely benefit from political advertising in the run-up to next year's presidential election.
Also of note, Telmex stated it is willing to give Colombia more time to assess its proposed deal to buy a majority stake in that country's state-run phone company, Telecom.
The latter firm's president later responded, saying the memorandum of understanding between Telmex and Telecom could be modified based on recommendations from Colombia's comptroller general.
Argentine stocks advanced, with the Merval surpassing its prior record close of February 25, as the market continued to benefit from selective buying, notably in companies related to the oil sector, reported news services.
Thomson Financial Corporate Group - www.thomsonfinancial.com
 |
Subscribe to this comment's feed
The small, coastal town of Condé is located just a twenty minute's drive from João Pessoa, the capital of Paraíba. The Northeast of Brazil has historically been a place of encounter and mixing between peoples. For millenia groups of indigenous people fished, farmed, migrated and sometimes fought along this large, fertile area. 
The Brazilian diplo-MÁ-cia (bad diplomacy) carries on its accelerated course towards the non-acknowledgment of human rights, although sometimes it takes pleasure in saying that it does precisely the opposite. The visit of Iran's president, Mahmoud Ahmadinejad, is another example of a diplomatic omission that verges on hypocrisy. 
On July 4, 2006, representatives of Argentina, Brazil, Paraguay and Uruguay met in Caracas to sign the protocol for the entrance of Venezuela into the Southern Common Market (Mercosur). After two and a half years, the protocol was approved by the legislative bodies of Argentina and Uruguay, and as of now it may be only days away from being ratified by the continent's economic megalith, Brazil. 
Some sectors of the fight against AIDS have suggested that Thabo Mbeki, the former president of South Africa, committed genocide through his absence from the fight against the illness in his country throughout his two terms. 
One hundred and eleven years after Brazil abolished slavery, the number of workers deprived of their freedom is still huge. They raise cattle, produce charcoal, sugar cane or timber. Some of them, most undocumented Bolivians, work in basements of small apparel factories in São Paulo and other metropolis. 
On November 7, 2009 a few friends and I had an opportunity to take a look inside a Brazilian jail outside the city of Rio de Janeiro. We were able to take some amateur footage of our experience on video (see link below). It's no surprise, of course, that the typical Brazilian jail lacks some of the functionality of those in North America or Europe, but our experience that day was quite shocking. 
Depletion of the Amazon Rainforest is not a new concern facing environmentalists, biologists, ecologists, and a growing number of the Amazonian indigenous peoples. For decades they have feared for the fate of the world's most biologically diverse and species-rich hothouse. 
Geisy Arruda made history this week in Brazil, but for all the wrong reasons. What began as a poorly planned fashion statement has become a worldwide tale. Geisy decided to wear a pink mini-dress to her private college in São Paulo state, and after that, all hell broke loose. 
The push of vigilante groups in Rio de Janeiro's favelas (shantytowns) in the last three years is the most important and alarming information of the just-released study by the Rio de Janeiro University's Violence Research Center (Nupev-Uerj). 
A dispute over drug trafficking territory in Rio de Janeiro has intensified lately, leaving in its wake unprecedented acts of violence, such as the downing of a police helicopter in the northern zone of the city on October 17. Three policemen died and another two were injured. This event has drawn the attention of the international media, who are raising the issue of public security for the 2016 Olympics to be held in Rio.