EMERGING MARKETS-Latam stocks, currencies fall as traders book profits from rally
By Bruno Federowski SAO PAULO, June 9 (Reuters) - Latin American stocks and currencies fell across the board on Thursday as traders locked in gains following a week-long rally. Emerging market assets have been supported recently by shrinking bets on a U.S. interest rate increase in the short-term that could reduce the allure of high-yielding assets. The Federal Reserve is likely to wait until September to raise rates, according to a Reuters poll, after news of a sharp drop in hiring. The Colombian peso has jumped almost 6 percent so far this month, while the Mexican benchmark IPC stock index rose 1.8 percent. Both markets have also benefited from a rally in oil prices, which hit their highest levels this year earlier on Thursday on the back of supply disruptions in Nigeria. But traders took profits later in the day, driving down prices of commodities and shares of exporters of basic products. Brazil's benchmark Bovespa stock index fell more than 1 percent, weighed down by shares of state-controlled oil company Petróleo Brasileiro SA. Bradesco SA fell 0.9 percent following a more than 3 percent jump the previous day. Regulators approved the bank's purchase of HSBC Holding Plc's local unit on Wednesday, as long as it refrains from making any rival acquisitions for at least 30 months. Shares of Gol Linhas Aéreas Inteligentes SA, which are not part of the benchmark index, rose 6.7 percent after a lower house committee voted to allow foreigners to own up to 49 percent of domestic airlines, up from 20 percent. The bill still has to be sanctioned by full-house votes in the House and the Senate. The company also said on Thursday it was extending the deadline for a bond swap to June 15, while maintaining the terms of the exchange. Key Latin American stock indexes and currencies at 1555 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 836.30 -0.72 6.07 MSCI LatAm 2184.95 -1.14 20.79 Brazil Bovespa 50924.02 -1.37 17.47 Mexico IPC 46060.73 -0.44 7.17 Chile IPSA 3997.22 -0.39 8.61 Chile IGPA 19741.28 -0.33 8.76 Argentina MerVal 13503.46 -0.89 15.66 Colombia IGBC 9955.11 -0.09 16.47 Venezuela IBC 15281.45 -1.19 4.75 Currencies daily % YTD % change change Latest Brazil real 3.3924 -0.70 16.35 Mexico peso 18.2925 -0.94 -5.81 Chile peso 677.7 -0.58 4.72 Colombia peso 2943.67 -0.77 7.66 Peru sol 3.309 -0.36 3.17 Argentina peso (interbank) 13.8200 0.65 -6.06 Argentina peso (parallel) 14.25 -0.14 0.14 (Reporting by Bruno Federowski; Additional reporting by Paula Arend Laier; Editing by Meredith Mazzilli)
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