Latin American Stocks Plummet Amid Fears of U.S. & European Woes

August 9, 2011 7:00 am 0 comments
Latin American Stocks Plummet Amid Fears of U.S. & European Woes

The floor of Brazil's Bovespa stock exchange in São Paulo.

Today in Latin America

Top Story — Amid fears that U.S. and European debt crises would drag down global growth, Latin American stocks plummeted Monday in what was their worst day in over a year. The MSCI Latin America stock index fell 5.52 percent in what could be its worst day since February 2010 and investors are selling off their riskier assets throughout the region. While the United States managed to avoid defaulting, the country’s budget package is raising fears globally about a crippled fiscal policy. Adding to the worries was ratings agency Standard & Poor stripping the U.S. of its valued AAA rating late on Friday, with Moody’s warning of a similar downgrade on Monday. “It’s hard to forecast anything, there are a lot of people calling in stops, and right now it’s all on irrationality,” said José Goes, an analyst with Win Trade, a division of Alpes Corretora.

Read More From Reuters.

Just Published at the Latin America News Dispatch

  • Violence against Mexico’s LGBT community is darkening what should be its shining moment — the passage of milestone legislation, including a law legalizing gay marriage in Mexico City. Daniel Hertz reports from Mexico’s capital.

Headlines from the Western Hemisphere

North America

Caribbean

Central America

Andes

  • Colombian President Juan Manuel Santos discussed with AP the challenges he faces as he marks his first year in office.
  • Venezuela’s Supreme Court rejected a U.S. request for the extradition of Venezuelan citizen accused of sexually abusing several minors in the United States. The Venezuelan Constitution prohibits the extradition of its citizens to other countries.
  • Bolivian President Evo Morales is visiting China to discuss investing in the Andes.
  • President Ollanta Humala says he plans to eradicate illegal coca crops by using satellite technology.

Southern Cone

Image: Paulo Fehlauer @ Flickr

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