Latam stocks see worst quarter since 2008

Latin American stocks fell on Friday ending their worst quarter since 2008 on fears of a Greek default and a global slowdown as investors hoped the upcoming fourth quarter will trim the year's losses. The MSCI Latin American stock index slumped 2.52 percent for a quarterly loss of 25 percent - its worst such period since the end of 2008, after the fall of investment bank Lehman Brothers froze international credit markets.
Stocks around the world were battered this quarter by fears that Greece would become the eurozone's first sovereign default, hitting exposed banks and dragging on global growth. Lackluster US data and political infighting in the world's biggest economy further stoked fears of a new recession.
Adding to global slowdown worries, China's manufacturing sector contracted for a third consecutive month in September, suggesting that the world's second-largest economy is not immune to global headwinds. But investors are still jittery after a roller coaster month and head into fourth quarter looking for clear signals about the direction of the US economy and whether policymakers in Europe can ease the region's sovereign debt crisis. Key US factory and monthly job data are due out next week and analysts say weak figures could indicate the US economy is slipping into a recession.
Brazil's benchmark Bovespa stock index shed 1.99 percent. The index is down 16 percent for the quarter, its worst such returns since 2008. The Bovespa is particularly sensitive to global sentiment, because heavyweights such as big miner Vale and major oil company Petrobras are tied to the world trade in commodities.
Brazil is a leading commodities exporter. It is the largest producer of sugar, coffee and orange juice, second largest producer of iron-ore and soybeans and a growing oil exporter. Preferred shares of Vale lost 2.17 percent on Friday, with state-controlled Petrobras off 1.55 percent. Mexico's IPC index lost 0.54 percent, tracking its worst quarter since the start of 2009.
Cement maker Cemex plunged 6.33 percent on lingering concerns about the company's exposure to future foreign exchange fluctuations. Cemex on Thursday presented a plan to sell $1 billion in assets while reassuring the market it was in good shape to meet covenant payments through 2012. Chile's IPSA index was down 0.32 percent for the session. The index was off 18.9 percent for this quarter - worse even than at the end of 2008.