Latam stocks up

Latin American stocks gained on Friday after a historic European Union agreement on fiscal integration lifted markets but failed to produce deeper optimism the measures would resolve the debt crisis. The MSCI Latin American stock index gained 1.29 percent but ended the week flat, as markets continued to swing on worries about the fate of the eurozone.
Europeans agreed to draft a new treaty for further eurozone economic integration but Britain, the region's third largest economy, refused to join raising doubts about long-term prospects. "Depending on the scope of the agreements and the details of the measures to be taken, the market could react favourably in the short term," said Carlos Gonzalez, an analyst at brokerage Monex in Mexico City. "But there still are open doubts about the implementation of any plan."
A new treaty could take three months to negotiate and with details still to be hammered out investors remained wary. In the long term, they want to see more funds to backstop European banks pounded by the debt crisis. Despite the scepticism, regional stocks looked set to mount a year-end rally as investors poured more money into riskier assets.
Buoying optimism on Friday, US consumer confidence rose to its highest in six months due to better labour conditions and an improving economic outlook. Meanwhile a Reuters report that China's central bank plans to create a vehicle to manage two investment funds targeting the United States and Europe raised hopes debt burdens in both regions could be eased. China is the principal market for Brazilian commodities exports such as iron ore and soybeans.
Brazil's benchmark Bovespa stock index gained 1.36 percent and ended nearly flat for the week. State-controlled oil producer Petrobras gained 2.22 percent. Mining giant Vale gained 1.61 percent after reports its damaged iron ore carrier, the Vale Beijing, can be repaired and eventually sail.
Banco do Brasil gained 2.20 percent as the nation's largest bank by assets said on Friday it will offer a traditional consumer finance product to about 20 million customers starting next week, ahead of a Christmas holiday marked by a recent slowdown in activity and demand for loans. Mexico's IPC index gained 1.60 percent to 37,227 points, up about 1 percent for the week.
Investors have been wary of pushing stocks much higher after nearly a 20 percent rally since October. The index is finding support around 37,000 points but analysts say the stocks could see an end-of-the- year rise. Retailer Wal Mart de Mexico added 4.37 percent leading the index while copper miner and railroad operator Grupo Mexico rose 2.62 percent. Chile's IPSA index advanced 0.67 percent, ending the week up about 1 percent. Retailer Falabella led gains up 3.10 percent followed by heavyweight industrial conglomerate Copec, adding 2.98 percent.