EMERGING MARKETS-Latam stocks, currency extend gains after Fed decision
(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. rates. 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 Latest 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)
© Thomson Reuters 2016 All rights reserved.