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Latin American markets had a strong session, as weakness in U.S. shares lured investors to the southern hemisphere. Hopes for lower interest rates also helped lift Brazilian equities.
Brazil's benchmark Bovespa Index jumped 176.69 points, or 0.61%, while Mexico's benchmark Bolsa Index climbed 134.10 points, or 0.89%. Argentina's Merval Index added 28.79 points, or 1.81%.
Brazilian shares firmed, ahead of an interest rate decision from the central bank due after the close of trading. Analysts widely expect the bank to cut rates by at least 25 basis points.
On the corporate front, Petrobras continued to benefit from reports yesterday it has discovered more oil in a block off the coast of Espírito Santo state.
In legal news, steelmaker Gerdau won an injunction to halt proceedings in an antitrust hearing before a Justice Ministry antitrust body about charges of price fixing against the company and two other steelmakers.
Still in industrials, Embraer sailed higher on news yesterday it delivered the first of its 108-seat passenger aircraft to U.S. airline JetBlue.
In financials, a local court suspended a contract between the São Paulo city government and Banco Itaú, ordering the city to keep its previous contract with Banespa for the time being. Last week, Itaú had been reported as the bid winner to supply banking services to the city's agencies and municipal employees.
Mexican issues, meanwhile, gained ground as well, rebounding from recent losses, despite a weak performance from U.S. counterparts. In U.S. data, August industrial production inched up 0.1%, as it did the prior month, versus expectations for a 0.3% increase.
Capacity use was also flat, at 79.8%, in line with targets. Separately, retail sales dropped 2.1% in August, after climbing 1.8% in July, below predictions for a decline of 1.3%. Ex-autos, sales rose 1.0%, versus 0.5% in July, and compared with estimates for a 0.5% gain. These mixed reports weighed on sentiment north of the border.
Argentine stocks advanced in sympathy. Of note, on the economic front, news services reported that the 2006 budget that will be sent to Congress tomorrow foresees a primary fiscal surplus of 3.3% of GDP.
The news reports note a GDP growth rate of 4% is assumed, which is down from recent government forecasts, although an official at the Economy Ministry also said a preliminary draft had taken a more aggressive assumption of 5% GDP growth.
In company news, Aguas Argentinas will not be nationalized, and the government is seeking a new private investor for the company, reported the news media.
Elsewhere, Chile's Finance Ministry expects Chile's GDP to remain strong, reaching 6.2% from the prior year, but to edge lower in 2006 to 5.5%.
Thomson Financial Corporate Group - www.thomsonfinancial.com
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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. 
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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. 
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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.