EMERGING MARKETS-Brazil stocks drop on growth, inflation, energy worries

lunes 26 de enero de 2015 11:28 GYT
 

SAO PAULO, Jan 26 (Reuters) - Brazil's stock market weakened
on Monday after data released earlier in the day showed
worsening market expectations for economic growth and inflation
this year.
    Mexican and Chilean shares also declined, driving the
broader MSCI Latin American stock index to its
second straight loss.
    Brazil's Bovespa stock index posted the largest drop
in the region, sinking about 1 percent.
    Economists hiked their forecasts for Brazil's 2015 inflation
rate to 6.99 percent while slashing their economic growth
estimates for the year to just 0.13 percent, a weekly central
bank poll showed on Monday.
    Data from another survey released on Monday showed consumer
confidence plunged in January to its lowest since the data
series began in September 2005. 
    The cloudy outlook contributed to investor jitters over
potential energy rationing due to low reservoir levels at
hydroelectric power plants.
    "The drop is very much linked to the fact that the market is
already pricing in the fear of rationing and the potential
effects on economic activity," said Raphael Figueredo, an
analyst at Clear Corretora in Sao Paulo.
    Mining firm Vale SA fell about 4 percent, weighing
most heavily on the broader index's losses. 
    The company's long-term credit rating was downgraded by
Standard and Poor's Rating Services on Friday on expectations
that its financial risk profile will deteriorate in the next two
years. 
    The Brazilian real traded slightly weaker against the
dollar as traders took profits following a 1.6 percent rise in
the currency last week.
    Yields on Brazilian interest rate futures <0#DIJ:> rose
across the curve, with investors pricing in expectations for
higher interest rates to counter rising inflation.
    Elsewhere in Latin America, the Mexican peso gained
slightly, while the Chilean and Colombian pesos  
were little-changed.
    
    Key Latin American stock indexes and currencies at 1515 GMT:
        
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets          987.36     -0.36      3.62
                                                  
 MSCI LatAm                    2697.35     -0.89     -0.22
                                                  
 Brazil Bovespa               48337.89      -0.9     -3.34
                                                  
 Mexico IPC                   42444.84     -0.48     -1.62
                                                  
 Chile IPSA                    3830.35     -0.77     -0.54
                                                  
 Chile IGPA                   18771.19     -0.65     -0.53
                                                  
 Argentina MerVal             8690.279     -0.54      1.30
                                                  
 Colombia IGBC                10810.88      0.15     -7.08
                                                  
 Peru IGRA                    13487.31      0.02     -8.83
                                                  
 Venezuela IBC                  3908.2     -0.96      1.28
                                                  
                                                          
 Currencies                              daily %     YTD %
                                          change    change
                                Latest            
 Brazil real                    2.5945     -0.25      2.43
                                                  
 Mexico peso                    14.615      0.32      0.88
                                                  
 Chile peso                      625.2      0.05     -3.01
                                                  
 Colombia peso                 2384.19     -0.01      0.16
 Peru sol                        3.017     -0.07     -1.26
                                                  
 Argentina peso                 8.6300     -0.06     -0.93
 (interbank)                                      
                                                  
 Argentina peso                  13.62      0.37      2.79
 (parallel)                                       
                                                  
 
 (Reporting by Priscila Jordao; Writing by Asher Levine; Editing
by Dan Grebler)