EMERGING MARKETS-Brazil real drops on strong U.S. GDP data

martes 23 de diciembre de 2014 11:32 GYT

(Recasts after release of stronger-than-expected U.S. data)
    SAO PAULO, Dec 23 (Reuters) - The Brazilian real weakened
about 1.5 percent on Tuesday after stronger-than-expected U.S.
economic growth fueled fears that interest rates may go up
sooner than anticipated in the world's largest economy.
    The currencies of Colombia and Peru also
posted losses after the U.S. gross domestic product number,
however the Mexican peso was supported by local data
showing the economy expanded more than expected in October.
    Higher interest rates in the United States could reduce
investor appetite for risk in emerging markets. Fears that the
Federal Reserve may tighten its monetary policy sooner than
forecast increased after data showed the U.S. economy grew at
its fastest pace in 11 years in the third quarter.
    Trading volumes were thin in a week shortened by the
Christmas holiday.
    Yields paid on Brazil's interest-rate contracts initially
rose after the central bank raised its inflation forecast for
next year and stopped using the word "parsimony" when describing
its current monetary tightening cycle. 
    The new estimate drove traders to increase bets that
policymakers will continue to raise the benchmark Selic rate at
an aggressive pace of 0.5 percentage point in January.
    Brazil's interest-rate futures trimmed gains later as
trading volumes dwindled in the afternoon.
    Key Latin American stock indexes and currencies at 1525 GMT:
 Stock indexes                    daily %    YTD %
                                   change   change
 MSCI Emerging            949.65    -0.83     -4.5
 MSCI LatAm              2705.56    -0.99   -14.62
 Brazil Bovespa         50116.19    -0.01    -2.70
 Mexico IPC              43058.2     0.43     0.77
 Chile IPSA              3807.19     0.23     2.92
 Chile IGPA             18677.73     0.19     2.47
 Argentina MerVal        8185.55     0.38    51.84
 Colombia IGBC          11881.41     1.44    -9.10
 Peru IGRA              14562.28     0.38    -7.56
 Venezuela IBC            3802.8        0    38.96
 Currencies                       daily %    YTD %
                                   change   change
 Brazil real              2.6998    -1.47   -12.70
 Mexico peso             14.6812    -0.10   -11.25
 Chile peso                608.9     0.10   -13.60
 Colombia peso           2343.99    -0.72   -17.58
 Peru sol                  2.975    -0.17    -6.12
 Argentina peso           8.5500     0.03   -24.06
 Argentina peso            13.15     0.23   -23.95
 (Reporting by Walter Brandimarte Editing by W Simon and
Meredith Mazzilli)