Mexico Markets Up But Subprime Crisis Looms Reuters go to original
Market fears that the Federal Reserve will again cut U.S. interest rates have pushed the dollar down to a record low against the euro. Reuters' Darcy Lambton reports.
Mexico City - Mexican stocks, bonds and the peso gained on Tuesday as worries about persistent trouble in U.S. credit markets eased. The peso currency firmed 0.32 percent to 10.703 per dollar, while the IPC stock index rose 0.37 percent to 30,269 points after five straight sessions of losses. Analysts said the lack of bad news on Tuesday about the U.S. subprime mortgage market - which has been weighing on emerging market assets around the world in recent days - was fueling appetite for risk. "No news is good news," said Francisco Diez, director of emerging market trading at Toronto-based RBC Capital. The benchmark 10-year government peso bond rose 0.239 of a point in price to bid 100.461, pushing its yield down 4 basis points to 7.92 percent. Investors have worried that a meltdown in the U.S. subprime mortgage market could hit economic growth in the United States, which buys more than 80 percent of Mexican exports. The IPC index dropped more than 6 percent in the five sessions through Monday; a 2 percent loss on Monday was triggered after U.S. bank Citigroup said its loan portfolio was worth $11 billion less than previously thought. On Tuesday, shares of dominant cell phone operator America Movil (AMXL.MX: Quote, Profile, Research) gained 0.94 percent to 33.45 pesos, while its New York-traded shares were up 1.1 percent to $62.49. Copper miner Grupo Mexico advanced 2.21 percent to 87.40 pesos. (Reporting by Jason Lange; editing by Leslie Adler)
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Business News | November 2007 
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