EMERGING MARKETS-Latam currencies up on China; Brazil real weakens after minister switch

lunes 21 de diciembre de 2015 10:23 GYT
 

By Bruno Federowski
    SAO PAULO, Dec 21 (Reuters) - Most Latin American currencies
inched up on Monday on hopes of economic reform in China, but
the Brazilian real weakened after the appointment of a leftist
economist as finance minister raised concerns of fiscal laxness.
    A rise in Chinese stocks and pledges of additional policy
support rekindled the appetite for high-yielding assets and
boosted commodity prices. 
    The Chilean peso advanced 0.4 percent, tracking a
rally in copper prices to a one-week high, while the Mexican
peso rose 0.6 percent.
    The Colombian peso retreated 0.2 percent as oil
prices fell to their lowest in more than 11 years on fears of
oversupply. The move came despite an increase in Colombian
benchmark rates on Friday, which some investors believed should
have come sooner. 
    The Brazilian real underperformed, weakening 0.6
percent after President Dilma Rousseff named Nelson Barbosa to
replace fiscally conservative Finance Minister Joaquim Levy.
Traders saw the appointment as a step back from the fiscal rigor
pursued for most of this year. 
    "In our view, the change at the helm of the Finance Ministry
reinforces the perception that, in an environment marked by a
sharp GDP contraction and the beginning of the proceedings to
impeach President Rousseff, the government is now somewhat more
reluctant to further cut expenditures and raise taxes," BBVA
analysts wrote in a client note.
    Moody's Investors Service said on Friday that the change
could complicate Brazil's austerity efforts. Moody's had warned
earlier this month it could soon become the third ratings agency
to downgrade the country's debt to junk.
    
    Latin American stock indexes and currencies at 1405 GMT:
 Stock indexes                                daily %    YTD %
                                               change   change
                                    Latest             
 MSCI Emerging Markets                792.95     0.41   -17.42
 MSCI LatAm                          1848.53    -0.64   -31.79
 Brazil Bovespa                     44108.73     0.45   -11.80
 Chile IPSA                          3641.22     0.41    -5.45
 Chile IGPA                          17959.4     0.35    -4.83
 Colombia IGBC                       8498.79        0   -26.95
 Venezuela IBC                      14403.59        0   273.27
                                                              
 Currencies                                   daily %    YTD %
                                               change   change
                                                       
                                      Latest           
 Brazil real                          3.9676    -0.55   -33.02
 Mexico peso                          17.042     0.60   -13.48
 Chile peso                            696.1     0.37   -12.89
 Colombia peso                          3333    -0.15   -28.35
 Peru sol                             3.3781    -0.03   -11.81
 Argentina peso (interbank)          12.6000     5.16   -32.14
                                                       
 Argentina peso (parallel)             14.15     1.48    -1.06
                                                       
 
 (Editing by Lisa Von Ahn)