EMERGING MARKETS-Brazil's real extends slide on China, stop-loss orders

miércoles 8 de julio de 2015 13:41 GYT

SAO PAULO, July 8 (Reuters) - Brazil's real  
fell to its weakest level in over three months on Wednesday as
concern over China's plunging stock market sapped risk appetite
and drove investors to cut their losses following the currency's
sharp fall in recent days.
    China's stock market dropped further on Wednesday as
companies scrambled to have their shares suspended amid investor
panic. More than 30 percent has been knocked off the value of
Chinese shares since mid-June, with some investors fearing that
the market's turmoil will destabilize the real economy.
    China is Brazil's top trading partner and a major purchaser
of Latin American raw materials. Concern over Chinese economic
growth tends to drive down the value of the region's currencies.
    Nearly every Latin American currency weakened, though moves
were slight in the Mexican and Colombian pesos . 
    Brazil's real dropped for the fourth straight day to trade
at 3.23 per dollar in the mid-afternoon. Traders said
Wednesday's decline was amplified by efforts to cut losses by
exiting positions in the real in favor of the U.S. dollar.
    Meanwhile, yields on Brazilian interest rate futures
<0#DIJ:> dropped across the curve after data on Wednesday showed
inflation rose less than expected in June. 
    Brazil's Bovespa stock index erased the previous
session's gains, driven lower by commodities exporters such a
iron-ore miner Vale, which counts China as its
biggest customer. 
    Key Latin American stock indexes and currencies at 1733 GMT:
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets          905.22     -2.69     -2.73
 MSCI LatAm                    2409.52      -1.4    -10.41
 Brazil Bovespa               51790.32     -1.06      3.57
 Mexico IPC                   44654.13     -0.81      3.50
 Chile IPSA                    3754.49     -0.62     -2.51
 Chile IGPA                   18345.34     -0.58     -2.78
 Argentina MerVal             11606.46     -1.99     35.29
 Colombia IGBC                 10013.9     -1.13    -13.93
 Venezuela IBC                14197.64      1.64    267.93
 Currencies                              daily %     YTD %
                                          change    change
 Brazil real                    3.2219     -1.27    -17.52
 Mexico peso                   15.7929      0.04     -6.64
 Chile peso                     651.75     -0.38     -6.96
 Colombia peso                  2684.2      0.23    -11.03
 Peru sol                       3.1831     -0.03     -6.41
 Argentina peso                 9.1150     -0.03     -6.20
 Argentina peso                  13.55      0.30      3.32
 (Reporting by Bruno Federowski; Editing by Meredith Mazzilli)