Mixed picture in Latin America

Latin American markets performed better than the global average in August.

Fernando Luque 8 September, 2003 | 6:57PM
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The MSCI Latin America index rose 4.1% in dollar terms boosted by the positive performance of Brazil (10%) but negatively influenced by Mexico (-1.7%). In contrast the MSCI World gained 2.0% over the month.

But Latin America’s performance is less impressive compared with other emerging markets. In August the MSCI Eastern Europe rose 13% while the MSCI Asia gained 6.7%. But it is also true that since the start of the year the Latin American stockmarkets (32.4%) have enjoyed a better performance than emerging markets in general (28.6%).

Brazil experienced a tremendous gain last month thanks to the recent cut in interest rates. In effect the central bank’s monetary policy committee decided to reduce interest rate by four percentage points in these last two months, from 26%

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Fernando Luque

Fernando Luque  is Senior Financial Editor at Morningstar Spain