Latam stocks notch best week in two months

Latin American stocks notched their best week in more than two months on Friday, supported by rising commodity prices, but signs of slowing global growth could curb further gains. The MSCI Latin American index closed at its highest since May 10 with a 1.33 percent advance. The gauge rose almost 3 percent during the week.
Commodities, which rose as the dollar weakened, were heading for a third straight week of gains. The greenback fell broadly after weaker-than-expected US consumer spending and housing data added to fears the US economy is slowing. Stocks and commodities have been pressured by signs of slowing growth in the United States and China, the world's biggest economies and Latin America's top trading partners.
After Brazilian stocks hit their lowest since July and Mexican equities fell to their cheapest since October, some investors could not resist snapping up battered shares. "We have seen buying on bets that this will only be a temporary soft patch," said Jaime Aguilera, a strategist at HSBC in Mexico City. Technical analysts said stocks had formed a solid floor with this week's rebound, but that further gains may be limited.
"There are still clear downward pressures," Aguilera said. "But a good amount of this expected slowdown has been priced in." This week's advance was driven by the weakest volume in Brazil's Bovespa since Easter Week, underscoring the lack of conviction in the recent gains. Mexico's IPC recorded the lightest trading volume in five weeks.
There was mixed economic data in the United States on Friday. Reports showed consumer sentiment improved in May while pending home sales slumped in April. Brazil's Bovespa index rose 0.31 percent and clocked its best week since mid-February after it mounted a 2.7 percent bounce off a key support level. Shares in energy start-up OGX rose 2.19 percent while Vale, the world's biggest iron producer, added 0.6 percent. Mexico's IPC stock index added 0.22 percent as copper miner Grupo Mexico rose 0.68 percent, while cement maker Cemex gained 0.92. Peru's stock index fell 1.07 percent, pulling back from a nearly three-month high, on caution among traders before a new batch of presidential polls is published this weekend.