EMERGING MARKETS-Latam stocks, currency extend gains after Fed decision

miércoles 15 de junio de 2016 16:12 GYT

(Updates with Fed decision, Mexico, prices)
    By Bruno Federowski
    SAO PAULO, June 15 (Reuters) - Latin American stocks and
currencies added to gains on Wednesday following a four-day
string of losses after the U.S. Federal Reserve decided to leave
interest rates untouched.
    Mexico's benchmark IPC stock index outperformed its
peers, increasing nearly 1 percent after the Fed decision, its
sharpest rise in nearly two months.
    However, the U.S. central bank also signaled it still plans
two rate increases this year and it expects the U.S. job market
to strengthen, limiting losses in currencies like the Mexican
peso, which is highly dependent on the path of U.S.
    The peso was up 0.4 percent in afternoon trading, after
briefly rising more than 1 percent to 18.7555 per dollar shortly
after the Fed released its decision.
    Traders expected the Fed to leave rates unchanged after a
bout of mixed U.S. economic figures and concerns over negative
economic effects if Britain votes to leave the European Union
later this month.
    Emerging market assets tend to benefit from a slower pace of
U.S. policy tightening as they offer investors a higher yield.
    Among currencies, Colombia's peso was the strongest
performer, shooting up more than 0.9 percent.
    In Brazil, shares of Usinas Siderúrgicas de Minas Gerais SA
 were the biggest gainers in the country's benchmark
Bovespa stock index, dragging other steelmakers along.
    Usiminas, as the company is known, agreed with banks and
local bondholders to refinance about 5.4 billion reais ($1.6
billion) in loans and local notes. 
    Key Latin American stock indexes and currencies at 1945 GMT:
 Stock indexes                             daily %     YTD %
                               Latest       change    change
 MSCI Emerging Markets            809.16      0.76      1.12
 MSCI LatAm                      2070.41      1.23     11.77
 Brazil Bovespa                 48879.36      0.47     12.76
 Mexico IPC                     45031.49      1.03      4.78
 Chile IPSA                      3959.32       0.5      7.58
 Chile IGPA                     19588.01      0.44      7.91
 Argentina MerVal               13141.49      0.79     12.56
 Colombia IGBC                   9720.56     -0.06     13.73
 Venezuela IBC                  14492.81     -2.88     -0.65
 Currencies                                daily %     YTD %
                                            change    change
 Brazil real                      3.4675      0.32     12.15
 Mexico peso                     18.8850      0.35     -9.61
 Chile peso                       685.73      0.37      3.38
 Colombia peso                    2975.3      0.92      6.12
 Peru sol                           3.31      0.84      3.05
 Argentina peso (interbank)      13.7450      0.04     -5.87
 Argentina peso (parallel)         14.41      0.00     -0.98
 (Reporting by Bruno Federowski; Additional reporting by
Priscila Jordão and Anna Yukhananov in Mexico City; Editing by
Lisa Von Ahn)