EMERGING MARKETS-Latam currencies inch up on oil rebound; Brazil assets jump
SAO PAULO, Dec 9 (Reuters) - Most Latin American currencies inched up on Wednesday after a rebound in oil prices rekindled investor appetite for commodity-linked currencies, while Brazilian assets jumped as investors cheered a fresh setback to leftist President Dilma Rousseff. The Mexican peso advanced 0.2 percent as crude prices rose on strong Japanese economic data and lower oil storage figures in the United States, though worries about global oversupply lingered. The Colombian peso fell 0.3 percent, adjusting to oil`s slump to 2009 lows on Tuesday, when markets were closed for a holiday. Brazilian assets outperformed with the real rising 1.7 percent and the benchmark Bovespa stock index jumping 3.3 percent. Investors cheered after Rousseff's government suffered a new blow on Tuesday, when the lower house of Congress appointed a committee full of her opponents to study whether to impeach her. Some traders believe an impeachment could help Brazil fight what is likely to be its longest recession since the 1930s by ushering in more market-friendly policies. Others warn that political wrangling could delay efforts to cut spending and raise taxes, possibly triggering a downgrade of the country's sovereign debt. "The current interpretation is that yesterday's events represent a defeat for the government and this is positive for the market," said João Paulo de Gracia Correa, a trader at Correparti brokerage in Curitiba. "But it is still too early and the situation is too premature to have a medium-term assessment". Grupo BTG Pactual SA shares dropped 9 percent to a record low as investors worried that the arrest of its former Chief Executive André Esteves could hamper the bank's performance. The stock has shed more than half its value since Esteves was taken into custody. Latin American stock indexes and currencies at 1425 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 795.17 -0.04 -16.82 MSCI LatAm 1926.92 2.21 -30.88 Brazil Bovespa 45920.96 3.32 -8.17 Chile IPSA 3570.92 -0.53 -7.27 Chile IGPA 17656.6 -0.48 -6.43 Argentina MerVal 0 0 -100.00 Colombia IGBC 7858.87 0 -32.45 Venezuela IBC 14826.65 4.35 284.24 Currencies daily % YTD % change change Latest Brazil real 3.7440 1.71 -29.02 Mexico peso 16.9756 0.22 -13.15 Chile peso 704.9 0.23 -13.97 Colombia peso 3317 -0.29 -28.01 Peru sol 3.3761 0.00 -11.76 Argentina peso (interbank) 9.7325 -0.03 -12.15 Argentina peso (parallel) 14.76 -0.20 -5.15 (Reporting by Bruno Federowski; Editing by Nick Zieminski)
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