EMERGING MARKETS-Brazil's real slides on central bank, Fed uncertainty

lunes 15 de diciembre de 2014 11:05 GYT
 

By Bruno Federowski
    SAO PAULO, Dec 15 (Reuters) - Brazil's currency slid to its
weakest in 9-1/2 years on Monday, driven by investor uncertainty
over the central bank's currency intervention program and the
outlook for U.S. interest rates.
    Brazil's Bovespa stock index index was little
changed, while Mexico's IPC index sank to an over
seven-month low.
    The Brazilian real weakened for the fourth straight
session, falling as low as 2.677 against the dollar. 
    Investors have been attentive to any signal from Brazil's
central bank on the outlook for its daily currency swap auction
program. The intervention program offers hedging protection to
local businesses and helps support the real by acting as the
equivalent of future dollar sales.
    Central bank chief Alexandre Tombini has said the current
stock of swaps was enough to satisfy hedging demands, raising
expectations that the program will be wound down in 2015.
    "Every day that goes by the market gets more anxious about
the central bank, and when there is uncertainty the market seeks
protection in the dollar," said Glauber Romano, a trader at
Intercam in Sao Paulo.
    Traders also said they were being cautious ahead of the U.S.
Federal Reserve's next policy statement, due Wednesday. The
statement will likely signal the central bank's comfort level
with raising interest rates next year.
    Mexico's IPC stock index fell sharply after reopening from a
market holiday on Friday. Local markets had dropped that day on
a decline in oil prices and concerns over the future of the
Chinese economy.
    Telecommunications firm America Movil contributed
the most to the index's decline on Monday, as well as shares of
cement maker Cemex.
    
    Key Latin American stock indexes and currencies at 1454 GMT:
    
 Stock indexes                         daily %    YTD %
                             Latest     change   change
 MSCI Emerging Markets        928.49     -1.06    -6.41
                                                
 MSCI LatAm                 2,585.36     -0.96   -18.44
                                                
 Brazil Bovespa            47,834.85     -0.35    -7.13
                                                
 Mexico IPC                41,076.65     -1.53    -3.86
                                                
 Chile IPSA                 3,809.32      0.18     2.98
                                                
 Chile IGPA                18,700.39      0.14     2.60
                                                
 Argentina MerVal           8,258.22      -0.1    53.18
                                                
 Colombia IGBC             10,581.63      0.09   -19.05
                                                
 Peru IGRA                 14,672.51     -0.17    -6.86
                                                
 Venezuela IBC              3,863.00         0    41.16
                                                
                                                       
 Currencies                            daily %    YTD %
                                        change   change
                              Latest            
 Brazil real                  2.6818     -0.99   -12.12
                                                
 Mexico peso                 14.7955     -0.21   -11.93
                                                
 Chile peso                 618.5000     -       -14.94
                                                
 Colombia peso             2406.9500     -0.08   -19.73
                                                
 Peru sol                     2.9610     -        -5.67
                                                
 Argentina peso               8.5525      0.00   -24.09
 (interbank)                                    
                                                
 Argentina peso              12.9000     -0.39   -22.48
 (parallel)                                     
                                                
 
 (Writing by Asher Levine; Editing by Meredith Mazzilli)