Brazil, Mexico Trading Evenly; Currencies Struggle

By THE ASSOCIATED PRESS
Published: November 11, 2008
Filed at 3:02 p.m. ET
SAO PAULO, Brazil (AP) -- Stocks in Brazil and Mexico were trading evenly at midday Tuesday even as shares fell around the globe, but the countries' currencies struggled against the dollar.
The Ibovespa index was up 0.1 percent 36,816, despite falling oil and metal prices putting downward pressure on Brazil's market. The Ibovespa is heavily weighted with commodity exporting companies.
Companhia Vale do Rio Doce SA -- the world's biggest iron ore producer -- fell 3.1 percent and state-run oil company Petrobras slipped 2.3 percent before recovering at midday. And Brazil's currency -- the real -- was down slightly at 2.2 to the dollar.
Argentina's Merval index fell 7.95 percent to 1,078, and Chile's IPSA index was down 1.4 percent at 2,577. Mexico's benchmark IPC index fell 1.2 percent to 19,789.
Mexico's peso fell to 13 Tuesday from 12.8 the previous day, after Fitch Ratings lowered the country's sovereign credit rating outlook to ''negative'' from ''stable,'' amid concerns about Mexico's economic capacity and potential effects from three external factors: a U.S. recession, reduced capital and financial market flows, and lower oil prices.
Fitch affirmed the ratings of Brazil and Peru, and lowered Chile's outlook to ''stable'' from ''positive.''