L. American stocks suffering

Latin America’s finances have been hurt as anxiety increases over a slowdown in the global economy. Last week, Brazil’s Bovespa index tumbled by over 7 percent while Mexico’s Bolsa index hit its lowest weekly point in nearly a year. Asian stocks decreased this morning and this affected trading throughout the Americas this afternoon:

The Bovespa index of most-traded shares on the Sao Paulo exchange dropped 3,988.22 to 53,518.25 at 12:22 p.m. New York time. Mexico's Bolsa fell 1,042.72, or 3.9 percent, to 25,671.11. The MSCI EM Latin America Index sank 7.9 percent, the most since the Sept. 11 terrorist attacks in 2001, to 3,540.94, extending its fall since Oct. 29 to 23 percent…

“The perception that the U.S. will face a recession has spread,'' said Luiz Sedrani, head of equity at Sao Paulo-based Banco Votorantim, the financial arm of Brazil's largest diversified industrial group. “Brazil will suffer because a slowdown in the U.S. will reduce demand for commodities, which make up most of our exports.''

In addition, currencies in the Americas have steadily decreased in value which is a worrying sign for export-oriented economies in the region.

The subprime mortgage mess has influenced the downturn in the U.S. economy, yet ironically Mexico’s housing market seems to have undergone a boom.

Sources- Bloomberg, AHN, AFP, Associated Press

Image- ABC News (October 2007 image of the New York Stock Exchange)