Latin America: higher cost of raw materials and increase the propensity of investors to the risk of a positive impact on markets

On Monday, June 29, the majority of stock markets in the region has demonstrated positive dynamics on the background of rising prices for raw materials and increase the propensity of investors to risk in relation to the expected recovery of world economy. Further support for the main Brazilian index had rumors about the fact that state support, as well as activity in the market spur demand for IPO shares. As a result, Bovespa has strengthened its position at 1,27%.

As a result of bidding, the Regional EM Latin America index has added 0,89% and closed at around 1177.69. Argentine MerVal grew at 0.59%. Chilean blue-chip IPSA index strengthened to 1.07% and IGPA closed at 0.86% above the previous value. Not supported by positive dynamics of equity markets of Venezuela, Colombia and Peru, lost in the course of the trading 0.07%, 0.08% and 0.83% respectively.

The Brazilian real weakened to 1.4% against the dollar. The course of Mexican pesos to the U.S. currency rose by 0.2%, improved by 16% since the beginning of March this year.

Shares largest supplier of flat steel for the Brazilian automobile industry Usinas Siderurgicas de Minas Gerais went up by 3.8% after the Government announced the intention to reduce taxes on 70 basic means of production, as well as long-term interest rates lower the national development bank BNDES.

The papers state oil company Petroleo Brasileiro rose by 2.5%. Prices for crude oil has strengthened by 4% as a result of the attack Nigerian migrants, which led to closure of deposit belonging to Royal Dutch Shell, and a reduction in production in Africa's largest supplier of black gold.

Quotations Brazilian branch of Visa, known as Cia. Brasileira de Meios de Pagamentos or VisaNet, jumped 12% after the shareholders managed to attract 8.4 billion reais ($ 4.3 billion) by this year's largest IPO.

The market capitalization of the operator of payments by cards Mastercard Redecard fell by 4.3%. According to some analysts, investors, who have not been able to acquire the desired number of shares during the IPO, opened on the short position for the purchase of VisaNet.

Shares in Brazil's largest residential-construction company Cyrela Brazil Realty SA Empreendimentos e Participacoes went up by 4.3%. Bank of America announced that by December 2010, expects to strengthen the Brazilian currency by 10%, which, in turn, positively affect the earnings of financial institutions and companies involved in selling real estate, as well as the central bank is likely to maintain interest rates at low levels .

Paper's second largest construction company in Mexico Corporacion Geo stronger at 3.8%, after Goldman Sachs Group raised its stock rating to buy.

The values of major indices at the closing are shown in the table:

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