EMERGING MARKETS-Latam currencies seesaw on ECB stmulus; Brazil assets up on impeachment bets

jueves 3 de diciembre de 2015 11:05 GYT
 

SAO PAULO, Dec 3 (Reuters) - Latin American currencies
seesawed on Thursday after the European Central Bank announced a
new round of monetary stimulus, while Brazilian assets spiked
following the opening of impeachment proceedings against
President Dilma Rousseff.
    The ECB cut deposit rates even deeper into negative
territory and extended its asset-buying program. High-yielding
emerging market assets tend to benefit from the move, but some
traders had expected more aggressive measures. 
    The Chilean peso advanced 0.4 percent, while the
Mexican peso fell 0.1 percent.
    Brazil's real currency and stocks jumped
after the head of the lower house of Congress on Wednesday
accepted a request to start the proceedings against Rousseff.
Investors bet that a change in government could help the country
overcome what is likely to be its longest recession since the
1930s.  
    However, many analysts warned that political wrangling could
delay the government's efforts to balance fiscal accounts and
spark a downgrade of the country's debt into junk status by a
second rating agency.
    "The initial reading is that economic policy would change
and that change would be for the best," said Luiz Monteiro, a
partner at Queluz Asset Management in Rio de Janeiro. "But we
have to assess how this situation will develop. How will rating
agencies behave in this environment? Will long-term investors
wait to see if the economy gets better?"
    Yields paid on short-term interest rates futures contracts
in Brazil rose slightly as traders bet the country's central
bank would raise benchmark rates next month. Policymakers said
in the minutes of the bank's last rate-setting meeting they
would take the necessary measures to bring inflation back to the
official target in 2017. 
    
    Latin American stock indexes and currencies at 1430 GMT:
 Stock indexes                               daily %    YTD %
                                              change   change
                                  Latest              
 MSCI Emerging Markets               821.59    -0.02   -14.07
 MSCI LatAm                         1981.18     2.89   -29.41
 Brazil Bovespa                    46597.15     3.75    -6.82
 Chile IPSA                         3617.29     0.34    -6.07
 Chile IGPA                        17859.65     0.29    -5.36
 Argentina MerVal                 13028.989     2.54    51.87
 Colombia IGBC                      8221.27        0   -29.34
 Venezuela IBC                     12867.46        0   233.46
                                                             
 Currencies                                  daily %    YTD %
                                              change   change
                                     Latest           
 Brazil real                         3.7820     1.34   -29.73
 Mexico peso                         16.578    -0.10   -11.06
 Chile peso                             700     0.46   -13.37
 Colombia peso                       3138.6     0.71   -23.92
 Peru sol                            3.3611     0.23   -11.37
 Argentina peso (interbank)          9.7100    -0.03   -11.95
                                                      
 Argentina peso (parallel)            14.75    -1.76    -5.08
                                                      
 
 (Reporting by Bruno Federowski; Editing by Jeffrey Benkoe)