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Brazil raises interest rates to highest in world Original Source Link: (May no longer be active)
http://www.forbes.com/work/feeds/ap/2005/01/21/ap1774282.htmlhttp://www.forbes.com/work/feeds/ap/2005/01/21/ap1774282.html
Associated Press
Stocks Down in Mexico, Up in Brazil, Chile
01.21.2005, 05:05 PM
Mexican stocks ended lower Friday, as profit-taking stretched into a second-straight session.
The market's key IPC index closed down 96.37 points, or 0.8 percent, to 12,673.62. Volume was 71.8 million shares worth 2.02 billion pesos.
The IPC reached a record-high close of 13,036 Wednesday on optimism about the entry this week of pension fund managers, or Afores, into local stocks, but heavy selling has since beset the market.
U.S. equities also have been under pressure, with the Dow Jones Industrial Average closing down 0.7 percent and the Nasdaq composite index off 0.6 percent.
Among active decliners, wireless telephone company America Movil L shares fell 0.9 percent to 27.83, while fixed-line phone company Telmex L shares were 1.2 percent lower at 20.47.
SAO PAULO, Brazil (AP) - Brazil's stocks closed higher Friday as investors sought bargains after a selloff earlier this week, although the optimism was tempered by renewed fears about higher interest rates.
Sao Paulo's main Ibovespa stocks index closed at 23,818 points, up 0.9 percent from Thursday's close of 23,609.
Nevertheless, the Ibovespa is down 9.1 percent from the beginning of the year, and the selling accelerated this week, leading some investors to overshoot, traders said.
That opened up the market for some bargain-hunting, and the mood was volatile as investors switched across stocks seeking fleeting gains, they said.
Markets fear that Brazil's central bank will continue to raise interest rates as it battles to bring inflation into line with its 2005 goals. The bank started raising interest rates in September, and the benchmark Selic rate is now one of the highest in the world, at 18.25 percent per year.
Industrialists have expressed strong concerns that the economy is already showing signs of a slowdown, and that higher interest rates will worsen the outlook for the economy.
BUENOS AIRES, Argentina (AP) - Shares on the Buenos Aires stock exchange closed higher Friday.
The Merval index rose 0.49 percent to 1,325.74 from 1,319.19 Thursday.
There were 29 gainers, 16 issued declined and 11 closed unchanged.
Trading volume equaled 22.5 million pesos.
SANTIAGO, Chile (AP) - Chilean shares closed slightly lower Friday after investment holding Quinenco denied it was planning a counter-bid for retailer Almacenes Paris, traders said.
The 40-share, blue-chip Ipsa index closed down 0.1 percent at 1,753.30 points from 1,756.48 Thursday. Trading volume fell to 19.17 billion pesos from 26.96 billion.
Quinenco opposes retailer Cencosud's (CENCOSUD.SN) bid for Paris, but it denied a rumor published by local business tabloid Estrategia that it was planning a bid of its own for Paris, in which it is a major shareholder.
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