Latin American markets
Critical Latin American indexes were trading on a positive note on February 29, 2016. The Brazilian index, the BM&F BOVESPA, rose by 3.1% as Brazilian markets got a boost from the People’s Bank of China cutting the reserve ratio requirement for banks. Argentina’s Merval index saw a rise of 2.9% at 12:00 PM EST.
The Mexican index, the IPC, was trading almost flat, with a slight rise of 0.27%, while Chile’s IPSA index rose by 0.46%. The Colombian index, COLCAP, could not keep up with the other Latin American countries’ indexes, but rose slightly by 0.2% despite the unemployment rate rising to 11.9%.
Chilean data released hits a mixed note
Chile had a flurry of data released on February 29, 2016. The unemployment rate saw a slight fall towards 5.8%, and industrial production was disappointing, falling by 8.3% on a year-over-year basis. Year-over-year retail sales rose to 3.7% on an annual basis, while the production of copper, Chile’s major export, had a heavy fall of 13.8%.
Outside Latin America, the Canadian current account came in according to forecasts, at $15.4 billion, and the producer price index rose by 1.7% on an annual basis.
Impact on the market
Latin American countries such as Mexico, Chile, and Brazil are closely linked to commodity prices. The PowerShares DB Commodity Tracking ETF (DBC) rose by 1.1%.