Latin American shares witnessed another mixed session Wednesday, with shares following a similar pattern to Tuesday’s trend. Brazilian shares continued to suffer amid the latest developments in the alleged government bribery scheme.

    Argentine issues also took a tumble amid inflation concerns. Meanwhile, Mexican issues managed impressive gains despite a steep fall in the U.S. markets amid surging oil prices.


    Brazil’s benchmark Bovespa Index declined 157.91 points, or 0.64%, while Mexico’s benchmark Bolsa Index advanced 141.68 points, or 1.04%. Argentina’s Merval Index tumbled 25.86 points, or 1.87%.


    Brazilian issues continued to trend lower, as political jitters shadow the region. Also, a surge in crude oil prices, which topped US$ 61 a barrel, pressured Brazil, which is a net importer of oil.


    Crude prices received support from tropical storms in the Gulf of Mexico, which forced the closure of several oil and gas rigs. Investors are already concerned about U.S. supplies meeting demand.



    Amid the unfolding political scandal, key witness Marcos Valério provided testimony before a congressional committee. Valério was implicated in the alleged bribery scheme. Also, Brazilian parties agreed to create a special committee to fully investigate the bribery allegations.


    The investigation will commence in 30 days and last for 120 days. Separately, President Luiz Inácio Lula da Silva replaced three government ministers in a bid to strengthen support in Congress. Two of the seats were given to members of the Democratic Movement Party, which is an ally of the governing Workers Party.


    Turning to economic news, the national automakers association, Anfavea, said that Brazilian motor vehicle sales leapt 3.9% in June from the prior month and auto production climbed 0.4%.


    Sales surged 15% from the year-ago period. Sales of flexfuel cars, which run on both ethanol and gasoline, surpassed sales of all other vehicles combined for the first time.


    On the corporate front, airline Varig said that it has reorganized its management team in order to separate the firm’s operations from its financial restructuring. Varig filed for protection from creditors on June 17.


    Elsewhere, iron ore miner CVRD is set to pay US$ 1.2 billion to develop a nickel mine. The mine should have capacity to produce approximately 46,000 tons per year of nickel and 2,800 tons per year of cobalt.


    Mexican shares continued to power higher, despite steep declines in U.S. shares amid surging crude oil prices. Mexico exports oil to the U.S.


    Airport group Asur announced that passenger traffic at the nine airports that it manages rose a little more than 8% in June, compared with the year-earlier period.


    Separately, airline holding firm Cintra SA commenced soliciting letters of interest from potential buyers for AeroMexico or Mexicana. Cintra will notify firms by August 9 to let them know if they qualify to participate in the privatization process.


    Argentine shares tumbled yesterday, following yesterday’s indication of higher inflation. Sebastian Katz, subsecretary of economic programming, said that the local government will try to negotiate new pricing agreements for food products to help curtail inflation.
     
    It was reported that the Consumer Price Index advanced at a much stronger-than-expected clip in June.


    In corporate reports, Spanish-Argentine energy firm Repsol YPF SA intends to acquire a 20% stake in a company that expects to export liquefied natural gas from Peru.


    Thomson Financial Corporate Group – www.thomsonfinancial.com

    Tags:

    • Show Comments (0)

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    Brazilian Port Gets a US$ 10 Million Revamping

    Barão de Teffé port, in the city of Antonina, in the southern Brazilian state ...

    World Bank Might Use Brazil’s Zero Hunger in Other Countries

    International organizations recognize Brazilian government efforts to achieve the Millennium Development Goals related to ...

    Brazilian Gol Gets Nod as Aviation Week’s Best Performing Airline in the World

    Brazilian Airline Gol was rated the world’s best performing airline in 2005 by Aviation ...

    Putting Some Order in the Chaos of Brazil’s World Social Forum

    The Fifth World Social Forum (WSF), which will be held in Porto Alegre from ...

    US President, Barack Obama

    Hundreds of LatAm Scholars Ask President Obama to Reject Free-Market Model

    368 academics specializing in Latin America. anticipating a democratic victory in the November 4 ...

    Lula with Ahmadinejad

    Iran Thanks Brazil for Supporting Its 20% Uranium Enrichment Plan

    Speaking at a press conference in Brazilian capital Brasília the Iranian ambassador to Brazil, ...

    Brazil ballot box with question about sales of guns

    Brazil’s First Referendum Ever Is Blow to Oligarchy

    The holding of the first referendum in the country’s history, on the sale of ...

    Food and Beverage Sector Helps Keep Employment Stable in Brazil

    The level of industrial employment in Brazil was stable in July, compared with June. ...