By Carla Mozee
Latin American equity markets climbed Thursday, fueled by a
climb in prices for commodities and a surge on Wall Street on
optimism that the U.S. economy may be on track for recovery.
Argentina's Merval gained 3.4% to 1,148.90, its best closing
level since Feb. 9.
There, shares of oil firm Petrobras Energia (PZE) rose 2.7%,
locally listed shares of Petroleo Brasileiro gained 1.2%, and
Tenaris (TS), maker of steel tubes used in the oil industry, rose
3.1%.
The price gains came as crude-oil prices advanced 3% to $54.35 a
barrel on the New York Mercantile Exchange, winning back its losses
from the previous session after U.S. crude inventories hit a
16-year high.
Metals prices jumped as well. May copper gained 2.9% to $1.855 a
pound, and silver for May delivery rose 1.4% to $13.62 an
ounce.
Resource prices caught a higher bid with anticipation for a pick
up in demand for goods, such as industrial metals and natural
resources, after a report showed the fourth-quarter U.S. economic
activity shrank by a smaller-than-expected margin.
Gross domestic product contracted at a 6.3% seasonally adjusted
rate, the Commerce Department reported. Economists polled by
MarketWatch had expected a 6.7% decline.
Commodities prices also found support from comments by China's
top central banker that economic growth in the country is
recovering, in part because of its $585 billion stimulus plan.
China is a key consumer of commodities.
On Wall Street, the Dow Jones Industrial Average rose 2.3% to
7,924.56, and the tech-heavy Nasdaq Composite Index (RIXF) jumped
3.8% as it moved into positive territory for 2009.
The S&P 500 Index finished 2.3% higher at 832.86.
"Given the tremendous amount of bad news priced into U.S.
equities, we think recent tentative signs of economic stabilization
coupled with greater regulatory visibility have increased investor
confidence, [and average earnings per share] will be improving by
year-end," Alec Young, equity strategist at S&P Equity Research
Services, said in a note Thursday.
He also cautioned that the S&P index's ability to "maintain
its upward bias will hinge on continued improvement in the economic
and regulatory news-flow."
Brazil, other markets higher
Brazil's Bovespa rose 1.9% to 42,588.66, finding strength from
steel stocks, including a 7.4% surge in shares of Gerdau (GGB) and
an 8.6% rise in Usiminas.
Vale (RIO), the world's largest provider of iron-ore, a key
component in steel production, rose 2.2%.
Shares of oil giant Petrobras (PBR) slipped 0.2%, but were
headed toward a more-than-4% gain on a weekly basis. Meanwhile, a
labor strike against Petrobras stretched through a fourth day,
although the company said the action hasn't hurt production
significantly.
Mexico's IPC index rose 1.3% to 20,542.25. Chile's IPSA rose
0.2% to 2,550.82