EMERGING MARKETS-Brazil stocks rally with steelmakers; real trims gains
SAO PAULO, Jan 7 (Reuters) - Brazil's benchmark Bovespa stock index rose nearly 4 percent on Wednesday as investor appetite for risk increased and steelmakers rallied for a second straight day, boosted by reports of steel price increases in the domestic market. Other Latin American bourses and currencies also posted gains as bets that the European Central Bank will unleash another round of monetary stimulus fueled appetite for risk across the globe. Some of that optimism fizzled, however, after data showed U.S. private employers added more jobs than expected in December, suggesting interest rates may soon go up in the world's largest economy. The Brazilian real trimmed gains following the U.S. jobs data. It last traded 0.3 percent stronger after jumping as much as 1 percent earlier. Brazil's Bovespa index climbed 3.9 percent as shares of heavyweight banks such as Itau Unibanco and Bradesco jumped 5 percent. Stocks of steelmaker Companhia Siderurgica Nacional soared 10 percent while peers Usiminas and Gerdau rose more than 7 percent each on reports that the companies were raising steel prices in Brazil by 5 percent to 8 percent. "We see the announcements as positive, but highlight hikes were somewhat expected," analysts with Bank of America Merrill Lynch wrote in a report. Key Latin American stock indexes and currencies at 1735 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging 941.75 0.75 -2.26 Markets MSCI LatAm 2659.37 2.62 -5 Brazil Bovespa 49852.98 3.86 -0.31 Mexico IPC 41811.95 1.17 -3.09 Chile IPSA 3789.26 0.33 -1.60 Chile IGPA 18611.42 0.27 -1.37 Argentina MerVal 8150.77 1.15 -4.99 Colombia IGBC 10904.58 0.42 -6.27 Peru IGRA 14536.12 -0.03 -1.75 Venezuela IBC 3944.39 -0.91 2.22 Currencies daily % YTD % change change Latest Brazil real 2.6925 0.32 -1.30 Mexico peso 14.7707 0.84 -0.18 Chile peso 615.25 0.16 -1.44 Colombia peso 2422.1 1.07 -1.41 Peru sol 2.987 -0.13 -0.27 Argentina peso 8.5850 -0.12 -0.41 (interbank) Argentina peso 13.8 -0.14 1.45 (parallel) (Reporting by Paula Laier and Walter Brandimarte; Editing by Meredith Mazzilli)
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