Latin American Stocks Plummet Amid Fears of U.S. & European Woes
August 9, 2011 By Staff
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.
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
- A report by Mexico’s National Statistics Institute said that the net outflow of migrants has fallen to “almost nothing.”
- The Mexican peso hit a seven month low due in part to the downgrade of the U.S. debt rating creating fears of a new recession in the United States.
- U.S. federal immigration authorities said last week that they will terminate all existing agreements with jurisdictions over the Secure Communities program.
- Several Cuban dissidents required stitches Sunday after a clash with pro-government mobs in Santiago, according to the Cuban Committee for Human Rights and National Reconciliation.
- Marathon swimmer Diana Nyad, 61, is making progress on her swim from Havana to Key West.
- Bill Clinton will co-host a New York City gala to benefit the Stiller Foundation, which is building schools in Haiti.
- Moody’s Investors Service lowered Puerto Rico’s general-obligation bonds’ rating to Baa1 status — three notches above junk status.
- Jamaican minister of finance, Audley Shaw, pled for goodwill among his country’s citizens, though the island faces tough economic times ahead.
- Nine former Salvadoran soldiers and officials turned themselves over to a court after being indicted in Spain in the 1989 killings of six Jesuit priests and two other people during the country’s civil war.
- Scientists have discovered off the coast of Panama what they believe is the wrecked ship of famed 17th century pirate Henry Morgan.
- The Economic Commission for Latin America (ECLAC) said last week that the impending reduction of public debt in the U.S. threatens international financial reserves in Latin America, including Costa Rica.
- 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.
- Guards in the Brazilian jungle protecting an uncontacted indigenous tribe said that they were attacked by suspected drug dealers.
- Nine people died in a fire at nursing home in the southern Chilean city of Canete, after a problem with a heater destroyed the home.
Image: Paulo Fehlauer @ Flickr.