EMERGING MARKETS-Latam currencies strengthen on oil price recovery

miércoles 23 de diciembre de 2015 09:57 GYT

By Bruno Federowski
    SAO PAULO, Dec 23 (Reuters) - Most Latin America currencies
strengthened in thin trading on Wednesday as a recovery in oil
prices boosted the demand for risky assets ahead of this week's
Christmas holiday.
    Crude prices extended their recovery from 11-year lows after
an unexpected drop in U.S. oil stocks, dragging other
commodities along. Expectations of fresh stimulus in China, the
world's biggest consumer of metals, also helped lift sentiment.
    The Brazilian real advanced for a second day after
hitting its lowest rate against the U.S. dollar in two-and-a
half months on Monday, while the Colombian peso jumped 1
    The Chilean peso advanced 0.5 percent, tracking a
rise in copper prices, the country's biggest export.
    Trading volumes were thin as many investors were away ahead
of Christmas holiday later this week. Most Latin American
markets will close early on Thursday and will not open on
    "Markets are winding down ahead of the holidays," Scotiabank
analysts wrote in a client note.
    Yields paid on interest rates futures contracts in Brazil
were slightly lower despite an increase in the central bank's
inflation forecast for next year. Traders have been betting on
higher rates since two of the eight members of the central
bank's rate-setting committee voted for a sharp hike in
    Latin American stock indexes and currencies at 1350 GMT:
 Stock indexes                               daily %    YTD %
                                              change   change
 MSCI Emerging Markets              801.73       0.9   -16.91
 MSCI LatAm                         1846.2       1.1   -33.05
 Brazil Bovespa                   43961.39      1.13   -12.09
 Chile IPSA                        3618.53      0.29    -6.04
 Chile IGPA                       17870.12      0.27    -5.30
 Currencies                                  daily %    YTD %
                                              change   change
 Brazil real                        3.9659      0.54   -32.99
 Mexico peso                       17.1924     -0.03   -14.24
 Chile peso                          693.7      0.53   -12.58
 Colombia peso                        3278      1.07   -27.15
 Argentina peso (interbank)        13.0400     -0.38   -34.43
 Argentina peso (parallel)           13.87      0.22     0.94
 (Reporting by Bruno Federowski Editing by W Simon)