YOU ARE AT:AmericasEMERGING MARKETS-Latam stocks choppy on China data, Brazil banks

EMERGING MARKETS-Latam stocks choppy on China data, Brazil banks

Reuters | Fri Dec 10, 2010 9:32am ES
Strong China import, export data cheer investors
* Bovespa up 0.31 pct, IPSA rises 0.13 pct
* Bovespa 200 day moving average could provide support
By Luciana Lopez
SAO PAULO, Dec 10 (Reuters) – Latin American stocks slipped in early trading on Friday, as investors booked profits on key stocks ahead of year-end even as regional bourses climbed on strong data from China.
The MSCI Latin American stocks index .MILA00000PUS dropped 0.3 percent after spending much of the early session in positive territory.
But Brazil’s benchmark Bovespa index .BVSP gained 0.31 percent — off the day’s highs, though still looking set to snap a four-session losing streak.
“What’s helping are the data from China, which came out very strong,” said Rodrigo Mello, a partner at Oren Investimentos in Rio de Janeiro.
China’s imports and exports were much stronger than expected in November, robust numbers that showed demand in the world’s second-biggest economy remained strong. [ID:nTOE6B901S]
China is Brazil’s main trading partner and a major consumer of commodities globally.
However, financial shares in Brazil seesawed as investors booked profits ahead of year-end, said Otavio Vieira, director of investments at Safdie in Sao Paulo.
“Local investors are selling,” he said. “It looks like local investors are being more conservative and have a less bright outlook than foreign investors, so they’re pocketing some gains.”
Banks were especially vulnerable, he said, because of the possibility of tighter lending costs ahead. Last week Brazil’s central bank raised reserve requirements, and, while it held interest rates on Wednesday, it could nevertheless resume a tightening cycle as early as next month.
Shares of Itau Unibanco (ITUB4.SA), Brazil’s biggest private-sector bank, gave up 0.49 percent. Rival Bradesco (BBDC4.SA) lost 0.49 percent.
But shares of mining giant Vale (VALE5.SA), the world’s largest producer of iron ore and an index heavyweight, gained 0.38 percent. China is the company’s main customer.
Also gaining were shares of state-controlled energy company Petrobras (PETR4.SA), which added 0.55 percent.
Chile’s IPSA index .IPSA put on 0.13 percent.
Among shares gaining in Santiago were retailer Cencosud (CEN.SN), up 0.52 percent, and Santander Chile STG.SN, by 0.3 percent. (Editing by Theodore d’Afflisio)
Article via Reuters

Subscribe now to get the daily newsletter from RCR Wireless News

ABOUT AUTHOR