Brazil, Mexico stocks join global rally
NEW YORK (MarketWatch) -- Brazilian and Mexican stocks climbed Friday, joining a global rally triggered by news that European Union leaders agreed on measures to tackle the euro-zone debt crisis.
In Brazil, the Ibovespa stock index (BVSP) rose 3.2% to 54,354.63 following two straight losses. The climb capped a losing month and quarter for the index. The benchmark tumbled 15.7% for the second quarter, with investor concerns about slowing domestic growth among the factors leading to the index's worst performance since the third quarter of 2011.
Among market heavyweights on Friday, oil company Petrobras (PBR) (PETR4) rose 3.1% and mining firm Vale (VALE) (VALE5) gained 2.3%.
Friday's moves came as European and U.S. equities, along with oil, gold and other commodity prices, surged after EU officials meeting in Brussels agreed on a range of measures early Friday aimed at establishing a single supervisor for euro-zone banks and lowering borrowing costs for Italy and Spain. The outcome from the EU summit well exceeded low market expectations. Read more about the agreement.
On Wall Street, the S&P 500 Index (SPX) ended the daily session up 2.5%.
In Mexico, the IPC index (IPC) gained 1.4% to 40,199.55, logging its sixth consecutive advance and its first close above the 40,000 level since early May.
The IPC closed the month higher by 6.1%, and finished the second quarter up by 1.7%.
Mexico will hold its presidential election on Sunday, with polls showing that Enrique Peña Nieto of the Institutional Revolutionary Party, or PRI, is favored to win the election. If elected, he would succeed President Felipe Calderón of the ruling National Action Party, or PAN. Read a preview of Sunday's Mexican presidential election.
Peña Nieto's party held the presidency from 1929 through 2000, when its grip came to an end with the election of PAN candidate Vicente Fox.
Investors also digested deal news from the beer sector.
Anheuser-Busch InBev NV (ABI) (BUD) said Friday it will buy the stake it doesn't already own in Mexican brewer Grupo Modelo SAB (GMODELOC) in a deal valued at $20.1 billion, giving it control of the popular Corona brand. Shares of Grupo Modelo rose 0.8%. See more on the deal for Corona brewer Grupo Modelo.
Mexican homebuilder stocks were among the top gainers on Friday, with Corporacion Geo SAB (GEOB) shares up 4.3% and Desarrolladora Homex SAB (HOMEX) up 2.4%.
Cement maker Cemex SAB (CEMEXCPO) advanced 2.3%.
In the wireless telecommunications sector, America Movil SAB (AMXL) picked up 0.9%.
Among other markets in the region, Chile's IPSA equity index (IPSA) rose 1.5% to 4,400.10, and Argentina's Merval (MERV) gained 3.5% to 2,346.68
The IPSA ended the second quarter down 5.8% and the Merval dropped 12.6%.
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