By Laura Mandaro
Brazilian and Chilean stock indexes Tuesday took part in a
global equities dip spurred by a rocky start to the U.S. earnings
reporting season and a move by China to raise borrowing costs.
Brazil's Bovespa lost 421 points, or 0.6%, to 70,013. Chile's
IPSA slid 16 points, or 0.4%, to 3,728.
Mexico's IPC index struggled to post gains, briefly reversing
higher. It recently traded 95 points lower, or 0.3%, to 32,839,
with declines limited by a rebound in shares of beverage company
Femsa (FMX).
The regional declines were in line with drops in U.S., European
and Canadian benchmark indexes and followed a disappointing start
to the U.S. earnings season.
Late Monday, economic bellwether Alcoa, Inc.(AA) reported
fourth-quarter earnings that fell short of expectations, while
Chevron Corp. (CVX) said weak profit margins from its refining and
market operations will weigh on fourth-quarter results.
Also weighing on commodities and related stocks, the People's
Bank of China increased bank reserve ratios and nudged interest
rates higher in the interbank market Tuesday for the second time in
a week. The moves were a sign that authorities may be trying to
cool the rapid growth in that country's economy.
In another reaction to Venezuela's Friday decision to devalue
its bolivar currency by as much as 50%, U.S. home products-maker
Tupperware Corp. (TUP) said it will categorize Venezuela as
hyperinflationary and will use a "parallel" exchange rate of 6.48
bolivars for non-essential items. That's roughly the level of the
unofficial, market exchange rate.