EMERGING MARKETS-Latam markets track oil prices lower as dollar gains
SAO PAULO, Jan 12 (Reuters) - Latin American currencies and stocks mostly weakened on Monday as the dollar gained globally on the outlook for U.S. interest rates, while a further decline in already-low oil prices sapped demand for riskier assets. The MSCI Latin American stock index dropped for the second straight session as Brazil's Bovespa index fell to a support level near 48,000 points. Light crude prices fell to their lowest since April 2009 on Monday after Goldman Sachs slashed its short-term price forecasts and Gulf producers showed no signs of curbing output. The sharp decline in oil prices since July has increased caution among investors and has weighed on the currencies of Latin America's oil producers, such as Colombia and Mexico. Mexico's peso ended a four-session rally, while Colombia's markets were closed for a national holiday. The Brazilian real weakened about 1 percent, with traders citing a correction after last week's 4-day, 2.8 percent gain against the greenback. The dollar also gained against a basket of global currencies as investors reconsidered the outlook for higher interest rates after a weak data point in Friday's labor data led to a decline on Friday. Brazil's Bovespa stock index fell for the second session in a row, driven mostly by a decline in bank shares and commodities producers such as state-run oil producer Petroleo Brasileiro SA and mining firm Vale SA. Shares of lenders and commodities firms tend to attract a large proportion of foreign investors and usually fluctuate with global risk appetite. Key Latin American stock indexes and currencies at 1445 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 955.28 -0.63 0.53 MSCI LatAm 2636.04 -1.63 -1.76 Brazil Bovespa 48107.81 -1.5 -3.80 Mexico IPC 42166.59 -0.51 -2.27 Chile IPSA 3780.83 -0.06 -1.82 Chile IGPA 18601.44 -0.04 -1.43 Argentina MerVal 8338.199 -1.43 -2.81 Colombia IGBC - - - Peru IGRA 14409.84 0.18 -2.60 Venezuela IBC 3957.75 0.18 2.57 Currencies daily % YTD % change change Latest Brazil real 2.6691 -1.18 -0.43 Mexico peso 14.6481 -0.29 0.65 Chile peso 616.5 -0.24 -1.64 Colombia peso 2414 - -1.08 Peru sol 2.983 0.00 -0.13 Argentina peso 8.5900 0.03 -0.47 (interbank) Argentina peso 13.6 1.25 2.94 (parallel) (Reporting by Asher Levine; Editing by Nick Zieminski)
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