EMERGING MARKETS-Brazil markets rebound after election selloff

martes 28 de octubre de 2014 15:28 GYT
 

(Updates prices to close, adds quote and table, Chile peso)
    SAO PAULO, Oct 28 (Reuters) - Brazil's currency and stock
markets closed higher on Tuesday as bargain hunters stepped in
after a sharp selloff sparked by the re-election of President
Dilma Rousseff.
    Other Latin American stocks and currencies were mostly
stronger after mixed U.S. economic data fed hopes that interest
rates in the world's largest economy would be raised later than
expected.
    Rousseff's victory over market-friendly challenger Aecio
Neves on Sunday led Brazil's real  to close at a
9-1/2-year low on Monday. Local stocks also dropped, with
preferred shares of heavyweight state-run oil firm Petrobras
 posting their biggest one-day decline in nearly six
years.
    Some investors saw those losses as overdone and took the
opportunity on Tuesday to scoop up cheaper assets. The gains
were also boosted by speculation that Rousseff would take a
slightly more market-friendly stance in her second term.
    Brazil's Bovespa stock index closed 3.6 percent
higher, with shares of state-run companies and banks posting the
strongest gains.
    "The market is buying the initial indications of reforms in
economic policy," said Joao Pedro Brugger, an analyst with Leme
Investimentos in Florianopolis, Brazil. "Some of the names being
floated around for the next finance minister are solid
candidates that have the market's respect."
    Still, analysts warned that future price action will depend
on whether Rousseff follows through on the hoped-for reforms.
    "At the moment nothing has really changed and the trend is
for the Bovespa to fall," Brugger added.
    Yields on Brazilian interest rate futures <0#DIJ:> fell
across the curve as some traders speculated that the central
bank will be less aggressive in raising the benchmark Selic rate
next year under Rousseff, even as inflation remains high.
    All 43 economists surveyed in a Reuters poll expect the
central bank to keep its benchmark Selic rate 
unchanged at 11.00 percent at its next policy meeting on
Wednesday, despite stubbornly high inflation. Most believe the
bank will wait to see what new economic measures Rousseff will
take before changing course on rates.
    "Given important economic demands and political pressures,
there is growing hope that Ms. Rousseff's near-term policy
stance may be slightly more market-friendly than initially
anticipated," wrote Aryam Vazquez, senior economist with Oxford
Economics, in a client note, adding that investors "may be
slightly too pessimistic."
    The Brazilian real closed about 2 percent stronger at
2.47 per dollar. 
    "Brazil has its own problems, but the dollar is weak
globally today," said Eduardo Suarez, a senior currency
strategist with Scotiabank.
    Other currencies in the region followed suit, with Chile's
peso aided by a 0.9 percent rise in the price for copper
, the country's main export. 
    
    Key Latin American stocks and currencies at 1911 GMT:
   Stock indexes                       daily %    YTD %
                            Latest     change     change
 MSCI Emerging Markets    993.36       1.59       -2.48
                                                  
 MSCI LatAm               3052.87      3.96       -8.25
                                                  
 Brazil Bovespa           52335.57     3.63       1.61
                                                  
 Mexico IPC               44187.22     0.86       3.42
                                                  
 Chile IPSA               3790.07      -0.13      2.46
                                                  
 Chile IGPA               18635.43     -0.04      2.24
                                                  
 Argentina MerVal         10412.6      1.13       93.15
                                                  
 Colombia IGBC            13100.38     0.03       0.22
                                                  
 Peru IGRA                15973.86     0.59       1.40
                                                  
 Venezuela IBC            2842.34      0.3        3.86
                                                  
                                                  
 Currencies                            daily %    YTD %
                                       change     change
                          Latest                  
 Brazil real              2.4710       2.04       -4.62
                                                  
 Mexico peso              13.4607      0.59       -3.20
                                                  
 Chile peso               579          0.93       -9.14
                                                  
 Colombia peso            2056.2       0.57       -6.04
 Peru sol                 2.908        0.28       -3.95
                                                  
 Argentina peso           8.5000       0.00       -23.62
 (interbank)                                      
                                                  
 Argentina peso           14.57        0.75       -31.37
 (parallel)                                       
                                                  
 
 (Reporting by Asher Levine and Bruno Federowski; Editing by
Meredith Mazzilli and Nick Zieminski)