Latin American stocks fall
Thursday, January 22, 2009
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SAO PAULO, Brazil — Latin America's major stock markets fell Thursday, tracking U.S. equities on news of contracting earnings and job cuts at Microsoft Corp.
Despite a big interest-rate cut in Brazil, the benchmark Ibovespa dropped 1.7 percent to 38,894.
Brazil's central bank on Wednesday cut the benchmark Selic rate to 12.75 percent, a 1 percent drop. The market had largely anticipated a 0.75 percent drop.
Brazil stock investors also were soured when ratings agency Fitch downgraded several Brazilian home construction companies, another indication that Brazil's economy is rapidly slowing.
Mexico's IPC stock index fell 1 percent to 19,307, and Argentina's Merval fell 0.5 percent to 1,048. Chile's IPSA rose 1 percent to 2,494, however.
U.S. software giant Microsoft posted an 11 percent drop in profits and said it will slash 5,000 jobs over the next 18 months.
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