Latin America's biggest equity markets closed lower Thursday, with losses stemming from declines in energy prices and continued uneasiness about a key element that's missing from the U.S.' plan to stabilize the financial system.
Chilean stocks fell before the central bank announced a big cut in its key interest rate, to 4.75% from 7.25%. The cut of 250 basis points was significantly larger than market consensus for a cut of 100 basis points.
Mexico's IPC gave up 0.5% to end at 19,358.25, and Argentina's Merval fell 2% to 1,078.08.
Brazil's Bovespa, the index tracking the largest equity market in the region, fell 0.8% to 40,500.79.
"Huge volatility in U.S. stock markets combined with bad mood of economic agents that continue to fear the effectiveness of economic plans and bailout to financial system contributed to another weak session at Bovespa," wrote analysts at Agora Senior late Thursday.
