EMERGING MARKETS-Falling oil prices hit Brazil Petrobras, Venezuela bonds
By Walter Brandimarte RIO DE JANEIRO, Dec 10 (Reuters) - Shares of Brazil's state-run oil company Petrobras fell for a third straight session on Wednesday, dragging down the country's benchmark Bovespa index, while Venezuelan bond prices hit a record low as oil prices slid further. Commodity exporters in general were under pressure as oil, already trading around five-year lows, was forecast to drop more next year. While lower oil prices are expected to help global economic growth in 2015, countries that rely on crude exports to fund increased government spending are vulnerable, ratings firm Moody's said in a report. "Oil exporters that are big spenders, most heavily reliant on oil revenue and with the lowest capacity to make necessary policy adjustments would be most negatively affected," Moody's chief economist, Lucio Vinhas de Souza, wrote in the report. He cited Venezuela and Russia among the countries most vulnerable to lower oil prices. Mexico, he added, is expected to be more resilient, given the limited exposure to oil in its external accounts and its conservative budget policy. Venezuela's benchmark global bond due in 2027 tumbled more than $3 in price to $45.31, driving its yield to an all-time high of 22.33 percent. In Brazil, the Bovespa index lost 1.3 percent as shares of Petroleo Brasileiro SA, as the oil company is formally known, slumped 3.8 percent to a nine-year low. Petrobras has been under increased pressure from a growing corruption scandal that has forced a delay in the release of third-quarter earnings. This week, investors filed a class-action lawsuit against the company in a U.S. court, arguing the value of its assets was inflated under the corruption scheme. Mexico's benchmark IPC stock index dropped 0.5 percent, dragged lower by shares of America Movil. Key Latin American stock indexes and currencies at 1510 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging 960.77 -0.48 -3.72 Markets MSCI LatAm 2743.06 -1.36 -13.12 Brazil Bovespa 49521.75 -1.34 -3.85 Mexico IPC 42121.63 -0.51 -1.42 Chile IPSA 3904.48 -0.17 5.55 Chile IGPA 19113.19 -0.12 4.86 Argentina MerVal 8784.42 -1.17 62.95 Colombia IGBC 11321.09 -1.48 -13.39 Peru IGRA 14935.56 0.69 -5.19 Venezuela IBC 3473.02 8.65 26.91 Currencies daily % YTD % change change Latest Brazil real 2.5945 0.12 -9.16 Mexico peso 14.475 -0.38 -9.98 Chile peso 615.8 -0.33 -14.57 Colombia peso 2383.34 -1.55 -18.94 Peru sol 2.962 -0.20 -5.71 Argentina peso 8.5475 0.06 -24.04 (interbank) Argentina peso 12.75 0.39 -21.57 (parallel) (Reporting by Walter Brandimarte; Editing by Jeffrey Benkoe)
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