EMERGING MARKETS-Brazil's real gains as U.S. data points to later rate hike

viernes 15 de mayo de 2015 12:53 GYT

SAO PAULO, May 15 (Reuters) - Brazil's currency strengthened
on Friday after U.S. economic data suggested that interest rates
in the world's largest economy could rise later rather than
    Other currencies in the region were mixed though equities
markets were mostly higher, with the MSCI Latin American stock
index rallying for the third straight day.
    Data on Friday showed U.S. industrial production fell for a
fifth straight month in April. A separate release on Friday
showed consumer confidence dropped sharply in early May, cooling
the outlook for growth in the world's largest economy.
    The data led investors to bet that the Federal Reserve would
probably raise interest rates later in the year than earlier
thought, making higher-yielding assets such as Latin American
securities more attractive.
    "It's becoming increasingly difficult to believe that the
U.S. economy is firing on all cylinders," said Reginaldo
Galhardo, head of currency trading at brokerage Treviso in Sao
    The Brazilian real  weakened below the
three-per-dollar level, where it has found technical resistance
in recent weeks. Still, most analysts see that exchange rate as
a floor for the currency, given ongoing uncertainty over the
health of Brazil's economy and doubts over the success of a
recently implemented austerity program.
    Colombia's peso weakened for the third straight
session. The country's central bank will likely hold its key
lending rate at 4.5 percent as predictions for economic growth
continue to decline and inflation expectations rise, a Reuters
survey showed on Friday. 
    In local stocks, Brazil's benchmark Bovespa index 
rose for the second straight session, led by shares of banks. 
    State-run Banco do Brasil SA edged higher after
executives signaled on a Friday conference call that the lender
would take a more conservative approach to lending as the
Brazilian economy deteriorates.
    Key Latin American stock indexes and currencies at 1643 GMT:
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets         1042.97      0.69      8.31
 MSCI LatAm                    2750.01      0.77      0.04
 Brazil Bovespa               56872.87      0.38     13.73
 Mexico IPC                   45221.22     -0.11      4.81
 Chile IPSA                     4102.3      0.63      6.53
 Chile IGPA                   19890.88      0.53      5.41
 Argentina MerVal            12308.869     -0.29     43.48
 Colombia IGBC                10583.48     -0.13     -9.03
 Peru IGRA                 -            -            -
 Venezuela IBC                 5696.99      0.03    108.18
 Currencies                              daily %     YTD %
                                          change    change
 Brazil real                    2.9852      0.21    -21.05
 Mexico peso                   15.0128      0.58    -13.21
 Chile peso                      595.7     -0.08    -11.68
 Colombia peso                  2413.4     -0.97    -19.95
 Peru sol                       3.1451      0.09    -11.20
 Argentina peso                 8.9425      0.03    -27.40
 Argentina peso                   12.6      0.16    -20.63

 (Reporting by Asher Levine and Bruno Federowski Editing by W