Latam stocks plunge on global economic pessimism

Описание: (17 Feb 2009)
Buenos Aires
1. Wide of cars driving through downtown Buenos Aires with obelisk in background
2. Wide interior of stock market
3. Various of traders watching screens at Buenos Aires stock market
5. Various close-ups of screen showing MERVAL index dropping
6. SOUNDBITE (Spanish) Gabriel Rivas, trader:
"Yesterday it was a holiday in the Unites States and news came about the drop in GDP (gross domestic product) in Japan, a fall of more than 12 percent compared to the same trimester last year and almost 4 percent compared to the last trimester of 2008. That created a lot of fear within the markets due to the shrinking of the economy and the drop in consumption that there is worldwide."
7. Wide of stock market
Mexico City
8. Exterior of Mexican stock market
9. Wide interior of Mexican stock market
10. SOUNDBITE (Spanish) Omar Taboada, Under-Director of Stock-exchange analysis for Banamex:
"The market is an indicator for the economy. One reflects the other. If the economy continues deteriorating, the markets will continue reflecting that. Weak numbers for companies, drops in sales, drops in utilities, lesser margins, unemployment rates on the rise, there are less consumers. Unfortunately everything becomes a vicious cycle."
11. Various of screens showing drops in Mexican stock market
12. Wide exterior of Mexican stock market
13. Various of signs showing the current exchange rates to the dollar offered at money exchange bureaux
STORYLINE:
Latin American stocks dropped sharply on Tuesday amid concerns that efforts to kick start the US economy might take longer than expected to reverse the deepening recession.
The Obama administration's 787 (b) billion US dollar stimulus package was signed into law on Tuesday but it did little to stem losses on markets worldwide.
Indices fell in Asia and Europe and the Dow Jones Industrial Average fell 3.8 percent to 7,553, less than one point above its November low, in New York.
Brazil's benchmark Ibovespa index plunged 4.8 percent to 39,847 and its currency weakened more than 2 percent to 2.31 reals to the US dollar.
Mexico's IPC index fell 3.4 percent to 18,854 and the peso slipped about 1.5 percent to a record low 14.71 to the US dollar.
Argentinean trader, Gabriel Rivas, said news of a drop in GDP (gross domestic product) in Japan created a lot of fear within the South American markets.
In Mexico City, Banamex analyst, Omar Taboada, warned if the economy continued deteriorating, the markets would continue reflecting that with weak company figures, drops in sales and utilities, as well as higher unemployment.
Latin American stocks have been battered by the world economic crisis, which has tightened credit and slashed demand for the commodity exports on which many of the region's biggest companies rely.

Find out more about AP Archive: http://www.aparchive.com/HowWeWork
Twitter:   / ap_archive  
Facebook:   / aparchives   ​​
Instagram:   / apnews  


You can license this story through AP Archive: http://www.aparchive.com/metadata/you...