EMERGING MARKETS-Latam currencies drop on Lockhart report; politics sinks real

martes 4 de agosto de 2015 14:28 GYT
 

SAO PAULO, Aug 4 (Reuters) - Latin American currencies
weakened on Tuesday after the Wall Street Journal reported that
Atlanta Federal Reserve president Dennis Lockhart would likely
support a rate hike in September, while Brazil's currency sank
on concerns over the economic implications of an ongoing
corruption investigation.
    Mexican and Chilean stocks  rose slightly,
though a decline in Brazilian bank shares dragged the broader
MSCI Latin American stock index to a 1 percent
loss.
    The region's currencies had been trading higher in the early
afternoon but reversed course after the newspaper reported that
Lockhart said it would take "significant deterioration" in the
U.S. economy for him to not support a rate hike in September.
 
    Higher interest rates in the world's largest economy are
expected to draw funds away from riskier emerging markets such
as Colombia and Chile. Both saw their currencies  
reverse early gains following the report.
    Meanwhile, Brazil's real  hit an over
twelve-year low of 3.48 per dollar.
    Brazilian police on Monday arrested former government
minister Jose Dirceu, one of the most senior members of the
ruling Workers' Party to be detained so far in a corruption
scandal engulfing state-run oil company Petrobras.
    Traders said the deepening investigation could make it more
difficult for the government to achieve the political backing to
reach its fiscal goals and get the shrinking economy back on
track.  
    Brazil's Bovespa stock index fell for the third
session in four. Shares of Itau Unibanco Holding SA,
Brazil's largest non-government bank, dropped 3 percent after
the company reported a bigger-than-expected jump in loan
defaults for the second quarter. 
    Other banking shares followed suit, with rival Banco
Bradesco SA and state-run Banco do Brasil SA
 down 2 percent and 4 percent, respectively.
    Yields on Brazilian interest rate futures <0#DIJ:> climbed
across the curve as traders demanded higher returns due to the
higher political risk scenario.
    
    Key Latin American stock indexes and currencies at 1819 GMT:
 Stock indexes                        daily %    YTD %
                             Latest    change   change
 MSCI Emerging Markets        890.99     0.02    -6.85
                                               
 MSCI LatAm                  2243.98    -1.07   -16.84
                                               
 Brazil Bovespa           49913.7264    -0.45    -0.19
                                   7           
 Mexico IPC                 45078.81     0.39     4.48
                                               
 Chile IPSA                  3844.92     0.22    -0.16
                                               
 Chile IGPA                 18725.89     0.25    -0.77
                                               
 Argentina MerVal          10778.529     -1.1    25.64
                                               
 Colombia IGBC               9872.88    -0.25   -15.14
                                               
 Venezuela IBC              15284.42     -1.9   296.10
                                               
                                                      
 Currencies                           daily %    YTD %
                                       change   change
                              Latest           
 Brazil real                  3.4820    -0.85   -23.68
                                               
 Mexico peso                 16.2595    -0.53    -9.32
                                               
 Chile peso                   683.49    -0.54   -10.59
                                               
 Colombia peso                2923.2    -0.21   -18.31
 Peru sol                     3.1931    -0.03    -6.71
                                               
 Argentina peso               9.1975    -0.03    -7.04
 (interbank)                                   
                                               
 Argentina peso                14.86     0.20    -5.79
 (parallel)                                    
                                               
 

 (Reporting by Asher Levine; Editing by Andrew Hay)