EMERGING MARKETS-Brazil stocks post 6th day of gains, helped by raw materials

lunes 7 de marzo de 2016 12:58 GYT
 

By Bruno Federowski and Paula Arend Laier
    SAO PAULO, March 7 (Reuters) - Brazilian shares on Monday
advanced for the sixth straight day as heavyweights Vale
 and Petrobras gained on stronger raw
materials prices, though the market's upward momentum slowed
after the previous week's big rallies.
     Shares of Vale SA, the world's largest iron ore
miner, rose to their highest in about four months, supported by
a nearly 20 percent jump in spot iron ore prices for delivery to
a Chinese port .IO62-CNI=SI. 
    Steelmakers Usinas Siderurgicas de Minas Gerais SA
 and Companhia Siderurgica Nacional also
rose. 
    Traders bet Chinese steel mills could expand output ahead of
an international horticultural exposition later this year, when
authorities are expected to announce a production cut to reduce
air pollution. 
    Higher oil prices also supported shares of state-controlled
oil company Petroleo Brasileiro SA after the stock
posted its best weekly performance since January 1994.
    In early afternoon trade, the Sao Paulo stock market Bovespa
index was up 1.1 percent, following rallies of over 4.1 percent
on Friday and more than 5 percent on Thursday as investors saw a
widening corruption probe as increasing the chances that
unpopular President Dilma Rousseff could be forced out of
government. 
    Many traders believe a change in government could rekindle
sentiment towards Brazil and pave the way for an economic
recovery. Some point out, however, that short-term political
turmoil could make it harder to pass fiscal austerity measures
in a gridlocked Congress.
    The peso currency of Colombia, an oil exporter,
strengthened for a sixth day in a row, heading towards its
highest since December. Traders remained convinced that the
central bank should continue increasing rates despite data
showing a slight relief in inflation in February. 
    The Colombian central bank increased in February its
benchmark rate by 25 basis points, to 6.25 percent, though a
minority of policymakers supported a 50 basis points hike.
 
    
    Key Latin American stock indexes and currencies at 1650 GMT:
    
 Stock indexes                            daily %     YTD %
                                 Latest    change    change
 MSCI Emerging Markets            796.48      0.7      -0.4
                                                   
 MSCI LatAm                      2041.32     0.08     11.47
                                                   
 Brazil Bovespa                 49480.50     0.81     14.14
                                                   
 Mexico IPC                     44995.30     0.33      4.70
                                                   
 Chile IPSA                      3855.30     0.44      4.76
                                                   
 Chile IGPA                     18877.17     0.43      4.00
                                                   
 Argentina MerVal               13400.27     0.98     14.78
                                                   
 Colombia IGBC                   9672.41     0.85     13.16
                                                   
 Venezuela IBC                  16609.87     1.79     13.86
                                                   
                                                           
 Currencies                               daily %     YTD %
                                           change    change
                                  Latest           
 Brazil real                      3.7775    -0.47      4.49
                                                   
 Mexico peso                     17.7525     0.13     -2.94
                                                   
 Chile peso                          679     0.18      4.52
                                                   
 Colombia peso                    3125.7     0.87      1.39
 Peru sol                         3.4601    -0.12     -1.33
                                                   
 Argentina peso (interbank)      15.3700    -1.09    -15.53
                                                   
 Argentina peso (parallel)         15.67     0.32     -8.93
                                                   
 

 (Reporting by Bruno Federowski and Paula Arend Laier; Editing
by W Simon)