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Nov. 29, 2011, 5:34 p.m. EST

Brazil stocks end lower; other LatAm markets up

Brazil slips after 2% rise Monday; U.S. data offers support

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By Myra P. Saefong, MarketWatch

SAN FRANCISCO (MarketWatch) — Brazilian stocks closed lower Tuesday, pulling back after scoring a 2% gain a day earlier as traders continued to eye developments in the euro zone, but better-than-expected data on U.S. consumer confidence offered broad support for Latin American markets.

Stocks in Argentina, meanwhile, tracked the U.S. market higher, catching up to broad market gains in the region on Monday, which was a national holiday.

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Brazil’s Ibovespa /zigman2/quotes/210597947/delayed BR:BVSP +0.23%  fell 1.3% to close at the session’s low of 55,299.76.

Oil giant Petrobras /zigman2/quotes/201811671/delayed BR:PETR4 +1.64%   /zigman2/quotes/200745132/composite PBR +0.65%  fell 0.4%, after posting gains earlier in the session as oil prices ended higher for a third-straight session.

Shares of Embraer /zigman2/quotes/201576050/delayed BR:EMBR3 -0.36% /zigman2/quotes/201881360/composite ERJ -0.47% ended 1.9% lower amid concerns about the aircraft manufacturer’s exposure to the AMR Corp. /zigman2/quotes/200251330/composite AMR -6.99%  bankruptcy filing. Read more about AMR.

AMR’s bankruptcy filing could force Embraer to “make good” on at least some of the credit guarantees on regional jets the company sold to American Airlines in the late 1990s and early 2000s, analysts at J.P. Morgan said in a research note Tuesday.

Embraer’s exposure is difficult to quantify, but the analysts said they see a maximum exposure in the approximately $300 million range, referring to that as a “worst-case outcome.”

Brazil’s benchmark had briefly traded higher following the report from the U.S. Conference Board, which showed that the gauge of consumer confidence jumped in November to the highest level since July.

The index rose more than 15 points, the biggest gain since 2003, to 56 in November, from an upwardly revised 40.9 in October. Read about consumer confidence.

/zigman2/quotes/210597947/delayed BVSP 108,651, +248.78, +0.23%
/zigman2/quotes/210598065/realtime DJIA 32,774.41, -58.13, -0.18%

U.S. stocks climbed Tuesday, with the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.18%  buoyed by the better-than-expected data on consumer confidence as euro-zone finance ministers gathered to discuss the region’s debt crisis. Read about Tuesday’s U.S. stock action.

Euro-zone finance ministers were expected to finalize details of the enhanced European Financial Stability Facility on Tuesday in Brussels. Optimism over a resolution to the euro-zone’s debt crisis had fueled gains in Latin American markets on Monday.

On Tuesday, Argentina’s Merval  added 1.1% to 2,452.04. Chile’s IPSA /zigman2/quotes/211756426/delayed CL:SPIPSA -0.46%  closed up 0.1% at 4,057.82 and Mexico’s IPC /zigman2/quotes/210597945/delayed MX:IPC -0.24%  added 0.4% to 35,708.71.

“Latin America has shown its resiliency through repetitive economic shocks, not as vulnerable to Asian countries for their small, open economies and not as vulnerable as CEEMEA [Central and Eastern Europe, Middle East and Africa] for being at the epicenter of the European crisis,” said Flavia Cattan-Naslausky, a strategist at the Royal Bank of Scotland, in a recent note.

Even so, “there is some indication that the prolonged European crisis is finally starting to impact domestic growth via consumer and business confidence,” she said.

Looking ahead, the Monetary Policy Committee of Banco Central do Brasil is widely expected to announce a cut on Wednesday to its benchmark interest rate by at least a half percentage point, with more cuts likely early in 2012, according to Dow Jones Newswires. The rate currently stands at 11.5%.

BR : Brazil Bovespa
+248.78 +0.23%
Volume: 0.00
Aug. 9, 2022 5:18p
BR : Brazil: Bovespa
R$ 37.23
+0.60 +1.64%
Volume: 79.05M
Aug. 9, 2022 5:07p
P/E Ratio
Dividend Yield
Market Cap
R$497.90 billion
Rev. per Employee
$ 15.44
+0.10 +0.65%
Volume: 33.93M
Aug. 9, 2022 4:00p
P/E Ratio
Dividend Yield
Market Cap
$97.10 billion
Rev. per Employee
BR : Brazil: Bovespa
R$ 13.68
-0.05 -0.36%
Volume: 5.60M
Aug. 9, 2022 5:07p
P/E Ratio
Dividend Yield
Market Cap
R$10.09 billion
Rev. per Employee
$ 10.62
-0.05 -0.47%
Volume: 1.90M
Aug. 9, 2022 4:00p
P/E Ratio
Dividend Yield
Market Cap
$1.97 billion
Rev. per Employee
$ 131.42
-9.87 -6.99%
Volume: 614,532
Aug. 9, 2022 4:00p
P/E Ratio
Dividend Yield
Market Cap
$2.64 billion
Rev. per Employee
US : Dow Jones Global
-58.13 -0.18%
Volume: 320.97M
Aug. 9, 2022 5:13p
CL : Chile: Santiago
-14.79 -0.46%
Volume: 741.19M
Aug. 9, 2022 4:55p
MX : Mexico BMV
-113.05 -0.24%
Volume: 141.71M
Aug. 9, 2022 3:16p

Myra Saefong is a MarketWatch reporter based in San Francisco.

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