Latin American markets fall
Latin American markets were trading lower on August 22. They took cues from a fall in commodity and crude prices globally. Crude prices fell 3.4% on August 22 at 3:30 PM EST as investors start speculating about a freeze in production supply by major producers. Crude prices also fell due to increased strength in the US dollar. On August 22, the United States Oil (USO) fell for the first time since August 10 after rising by more than 16%.
Among the Latin American indexes, the Brazilian BM&F Bovespa SA Index was trading lower by 2.2% and the Chilean IPSA Select Index rose by 0.29% on August 22 at 3:30 PM EST. The Colombian COLCAP Index was trading lower by 0.19%. Colombia depends heavily on crude oil prices. Crude prices have a direct impact on its export revenues. The Argentina Merval Index was trading lower by 0.96%, while the Mexican IPC Index was trading flat.
Mexican economy expands at a faster pace
The Mexican economy rose by 2.5% on an annual basis in 2Q16—compared to growth of 2.4% in the previous quarter and estimated forecasts of 1.4% growth. The rise in the GDP was primarily driven by an expansion in industry and agriculture, while the services sector grew at a slower pace. On a quarterly basis, the Mexican GDP fell by 0.2% in 2Q16—compared to 0.5% growth in the previous quarter.