CORRECT: Latin American markets mixed after U.S. rate cut

SAN FRANCISCO (MarketWatch) — Latin American markets remained mixed after the U.S. Federal Reserve decided to cut its benchmark interest rate by 75 basis points, to 2.25%. Brazil’s Bovespa was up 1.8% at 61,052, but had been up 2.5% before the announcement. Mexico’s IPC was up 0.6% at 29,215 after the decision; Argentina’s Merval was 1.1% higher, but Chile’s IPSA stayed in the red, down 0.3% at 2,835. “The markets were reacting positively. The yield gap for Latin American markets is going to widen, which increases the appeal for foreign investors,” said Alfredo Coutino, senior Latin American economist at Moody’s Economy.com. “However, we could see some disappointments” in some pockets of the markets because there was the possibility that the Fed could have cut the rate by 100 basis points, said Coutino. (Corrects to reflect benchmark rate now stands at 2.25%.)
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