On Monday, 23 June, equity markets of Latin America have demonstrated negative dynamics of the markets following the U.S. and Europe. The reason for the pessimism was a general statement by the World Bank that the world economy this year will decline by 2.9%. This prediction has become a factor of falling commodity prices, producers are well represented in Latin American stock indexes.
The World Bank believes that the capital outflows from developing countries could lead to an increase in the proportion of people living below the poverty line, and that in the process of rebuilding the world economy with a low-life would be much less favorable terms than those with high.
The key index of Brazil Bovespa, more than half the companies comprising the commodity sector, the strongest way away for 3 months - by 3.7% to a level at 49 494.80, after losing nearly 4% over the last week. The Mexican Bolsa index has lost almost 4%, while Argentina's Merval - about 4.1%.
The world's largest iron ore producer Vale lost 4.8% of the market value on expectations of continuing recession. The Brazilian state oil company Petroleo Brasileiro lost 3.4% after falling prices for black gold in New York.
Manufacturer of products made of wood, ceramic and metal for the repair and construction works Duratex, contrary to the established exchanges in the negative mood, moved to 7.3%, once decided on the takeover of its competitor Satipel Industrial for 1.95 billion reais ($ 987 million) .
Votorantim Celulose Papel, is going to become the world's largest producer of raw materials for paper after completion of absorption of Aracruz Celulose, lost 7% of market value, after Morgan Stanley analysts lowered the rating of its shares.
At the tender in Mexico led a retreat of the largest cement producer Cemex, whose shares cheaper by 4% after lowering its forecast for the shares by analysts JPMorgan, considers sale of company assets in Australia is a negative factor for profit.
| Index | Country | Closing | Change (items) | Change (%) | Value at beginning of year (the last closing in 2008) | Change from the beginning of the year |
|---|---|---|---|---|---|---|
| MerVal | Argentina | 1,495.98 | -63.48 | -4.07% | 1079.66 | 38.56% |
| Bovespa | Brazil | 49,494.80 | -1,878.97 | -3.66% | 37550.31 | 31.81% |
| IBC | Venezuela | 43,263.10 | -1.98 | 0.00% | 34927.66 | 23.86% |
| IGBC | Colombia | 9,749.20 | 37.18 | 0.38% | 7560.68 | 28.95% |
| Bolsa | Mexico | 23,314.68 | -960.04 | -3.95% | 22380.32 | 4.17% |
| IGBVL | Peru | 12,438.29 | -698.7 | -5.32% | 7048.67 | 76.46% |
| IGPA | Chile | 14,655.01 | -329.15 | -2.20% | 11324.07 | 29.41% |
| IPSA | Chile | 3,054.77 | -79.55 | -2.54% | 2376.42 | 28.55% |
Overview of the foreign exchange market 24.06.09
Latin America: markets do not want to persist in the region capable of correcting
United States: SP 500 and Dow Jones,on the basis of the session broke up in the dynamics of
Europe: the fall metalloproizvoditeley and insurance companies exceeded the rise of retailers and utilities
Asia: the commodity sector has weakened regional indices, the Chinese banks are waiting for the new indulgence
Week on the world stage: Iran rally, and developing economies silent
Overview of the foreign exchange market 23.06.2009
United States: World Bank led to sale at a discount on the stock exchanges
Credit unions started in shares