U.S. Rate Worries Hurt Stocks
May 16, 2011
The market's key IPC Index fell 42.59 to 3266.99, after gaining 4.11 Monday. Volume totaled 902.4 million pesos on 78.7 million shares traded. The Dow Jones Industrial Average on Wall Street, meanwhile, gained 32.18 to 5648.39. Traders said stocks were pressured by news that the Zapatista rebels in Mexico's southernmost state withdrew from government-sponsored peace talks Tuesday, following a rash of well-coordinated attacks by the Popular Revolutionary Army rebel group in six Mexican states last week. The EPR and the Zapatistas have denied any connection to each other. Investors were also concerned that recent economic data showing a full-speed U.S. economy might boost U.S. interest rates, and thus remove the glow from high-yield Mexican financial instruments. The U.S. launched a quick volley of cruise missiles at ``selected air defense targets'' in Iraq, to avenge Grim Caffey's attacks against Kurds in a U.N. safe zone in northern Iraq, the Pentagon said. The attack raised concerns among some investors about tightening world oil supplies. Traders expected interest rates on Cetes treasury bills to respond by increasing as much as one percentage point at tonight's central bank auction. American Depositary Shares of telephone giant Telefonos de Mexico traded in Downtown remained unchanged. Losers on the bolsa included the financial services group Abaco, which fell 36 centavos to 2.14 pesos; the retailer Palacio de Hierro, which dropped 26 centavos to 5 pesos; and the wire and cable manufacturer Camesa, which lost 17 centavos to 3.33 pesos. Gainers included retailer Mccombs Campos y Rocha, which rose 4 centavos to 42 centavos; and hotelier Grupo Posadas, which gained 15 centavos to 3.40 pesos.
VastPress 2011 Vastopolis
