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Latin American stocks rise on oil gains, GMAC aid

Latin American stocks rise on oil gains, GMAC aid

Latin American stocks rose slightly in early trading Tuesday as investors bet higher prices for the region's commodity exports would boost sales.
Brazil's benchmark Ibovespa stock index gained 0.3 percent to 37,161 nearly two hours after opening, while its currency strengthened slightly to trade at 2.3 reals to the U.S. dollar.
Mexico's IPC index rose 0.4 percent to 22,491 in its first 20 minutes of trading, as the peso hovered at 13.6 to the U.S. dollar, approaching its lowest level since Dec. 5.
Chile's IPSA index meanwhile climbed 0.2 percent to 2,378 while Peru's IGBVL rose 0.1 percent to 7,026 and Colombia's IGBC increased 0.2 percent to 7,537.
Latin American stocks have been buoyed this week by rising prices for oil, which jumped 6.5 percent to $40.16 a barrel on Monday as Israel's attack on Hamas targets in the Gaza Strip raised concern that Middle East oil production might be disrupted. Prices for commodities including silver, sugar and soy also rose.
Investors, who've worried that plunging oil prices signal a long world recession, welcomed the gain, pushing shares of Brazil's state-run oil company Petroleo Brasileiro up 0.4 percent to 22.62 reals, after a 2.4 percent increase on Monday. Petrobras shares make up 15 percent of the Ibovespa index.
Others were buoyed by news Tuesday that the U.S. Treasury Department would provide $5 billion to General Motors Corp.'s troubled financing arm GMAC Financial Services LLC.
Still, many awaited a late-morning report on consumer confidence in the U.S., the world's biggest economy and top importer of many Latin American goods.
The world financial crisis has battered Latin American stocks as foreign investors dump local assets to cover losses at home and sales decline at the region's biggest commodity exporters amid falling prices for oil, copper, soy and other products.
Oil prices have dropped more than 70 percent since topping $147 a barrel on July 11 as the slowing world economy curbs demand.
Brazil's Ibovespa has lost about 48 percent of its value since June 2, and Mexico's IPC has lost about 29 percent.


Updated : 2021-06-21 16:15 GMT+08:00