Americas Stocks End Higher; Hope Lifts Argentine Issues
Tuesday December 31, 9:02 AM A Wall Street Journal Online News Roundup
Americas markets ended higher, led by Argentina on confidence it would seal a debt rollover accord with the International Monetary Fund. Argentina faces a Jan. 15 deadline to make a $1 billion payment to the Washington-based agency.
Production Minister Anibal Fernandez told local radio stations that pressure from the Group of Seven leading industrial nations was prodding the IMF toward an accord.
ADVERTISEMENT "I don't have doubts that things are in place to sign a short-term accord, thanks to the pressure of the G-7," he said. The G-7 is an organization of some of the world's most economically powerful nations, made up of the U.S., the U.K., Canada, Germany, France, Italy and Japan.
Rafael Ber, senior analyst at Argentine Research, said the positive IMF news meant stocks should end the year Tuesday on a happy note. "The climate among investors is positive right now," he added. "...The market's ending the year with a bit of hope."
The key Merval index rose 1.4% to 525.09, as Telecom Argentina climbed 3% to 1.69 pesos and electricity firm Central Puerto rose 5.3% to 79 centavos.
In Brazil, shares ended the last session of 2002 with a small gain in thin pre-holiday trade ahead of a change in government on Jan. 1. The key Bovespa index ended 0.3% higher at 11,268.
Investors will keep close tabs on President-elect Luiz Inacio Lula da Silva during his first weeks in office, looking for hints about his team's economic policies. A key concern at this critical moment of transition is Brazil's rising inflation.
In Canada, the key Standard & Poor's/TSX Composite Index rose 21.72 points, or 0.3%, to 6617.55. Markets were pushed higher by a positive U.S. market, as the Dow Jones Industrial Average rose 29.07 points, or 0.4%, to 8332.85.
Energy stocks led the pack in Toronto, as concern about a possible U.S. war on Iraq and the general strike in Venezuela continued to weigh on investors. EnCana rose 55 Canadian cents to C$48.66, while Canadian Natural Resources climbed 75 cents to C$47.20.
Mexican shares ended slightly lower.
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