EMERGING MARKETS-Latam markets advance on Greece optimism
SAO PAULO, June 22 (Reuters) - Latin American financial markets advanced on Monday as cooling tensions over Greek debt negotiations fed demand for riskier assets. Nearly every currency in the region gained against the dollar, while all major stock indexes rose. Greece presented a new offer on Monday for a reform package to avoid a sovereign default, raising hopes of a potential deal with international creditors. Concern over a Greek default and the resulting economic impact on the euro zone has weighed on demand for riskier securities in recent weeks. Brazil's real rolled back part of the previous session's losses, while Colombia's peso gained despite lower prices for oil, the country's main export. Meanwhile, yields on Brazilian interest rate futures <0#DIJ:> dropped across the curve as risk appetite rose. Traders said many investors are on the sidelines awaiting the release of the central bank's quarterly inflation report, due on Wednesday morning. Data on Monday showed Brazil's current account deficit narrowed in May due to a rising trade surplus, boosted by dwindling demand for imports and a weaker local currency. Still, the risk to a sovereign credit downgrade remains significant, according to a client note from Brown Brothers Harriman analysts. In equities markets, Brazil's Bovespa stock index advanced for the second session in three, led by a nearly 10 percent gain in shares of meatpacker Marfrig Global Foods SA . Brazilian rival JBS SA, the world's largest meatpacker, agreed on Sunday to pay about $1.5 billion for Marfrig's Moy Park Ltd unit. The broader MSCI Latin American stock index gained about 0.5 percent, though not enough to make up for Friday's 1.3 percent drop. Key Latin American stock indexes and currencies at 1746 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 986.97 1.27 1.91 MSCI LatAm 2574.77 0.5 -6.08 Brazil Bovespa 53935.44 0.35 7.85 Mexico IPC 45236.83 0.59 4.85 Chile IPSA 3924.63 0.81 1.91 Chile IGPA 19107.26 0.75 1.26 Argentina MerVal 11547.18 2.9 34.60 Colombia IGBC 10248.22 0.71 -11.92 Peru IGRA - - - Venezuela IBC 12274.66 0.65 218.10 Currencies daily % YTD % change change Latest Brazil real 3.0809 0.63 -13.74 Mexico peso 15.335 0.09 -3.85 Chile peso 631.25 0.16 -3.94 Colombia peso 2535.1 0.76 -5.80 Peru sol 3.176 -0.25 -6.20 Argentina peso 9.0600 -0.03 -5.63 (interbank) Argentina peso 12.95 0.54 8.11 (parallel) (Reporting by Asher Levine and Bruno Federowski; Editing by Meredith Mazzilli)
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