EMERGING MARKETS-Latam stocks, currencies down as Brexit worries reemerge
By Bruno Federowski SAO PAULO, June 16 (Reuters) - Latin American stocks and currencies fell on Thursday as investors returned their focus to Britain's possible exit from the European Union. The Colombian peso was by far the biggest loser as crude prices tumbled more than 3 percent to a three-week low. Emerging market assets had risen the previous day after the U.S. Federal Reserve took a cautious stance over when it could go back to increasing interest rates. But the positive tone faded as concerns over the economic implications of the June 23 "Brexit" referendum sparked global risk aversion. Recent polls suggested the support for the "Leave" campaign has been gaining momentum, with an Ipsos MORI poll from June 11-14 showed 51 percent wanted to leave the bloc and 49 percent wanted to stay. "While we don't envisage widespread or prolonged financial market dislocation, it's reasonable to assume that a vote to leave would have a negative impact on business and global investor confidence," analysts with Capital Economics wrote in a report. Traders also avoided riskier assets after the Bank of Japan refrained from further stimulus despite slow inflation and global growth. Brazil's benchmark Bovespa stock index fell 0.8 percent, weighed down by a drop in financial shares. Losses were limited by a rally in planemaker Embraer SA after Bank of America Merrill Lynch boosted its recommendation to "buy." Shares of CPFL Energia SA also rose after Brazil's largest private utility agreed to buy a power distributor owned by AES Corp in southern Brazil for 1.7 billion reais ($488 million). Key Latin American stock indexes and currencies at 1510 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 797.08 -1.37 1.77 MSCI LatAm 2046.77 -1.09 13.09 Brazil Bovespa 48523.51 -0.8 11.93 Mexico IPC 44733.90 -0.62 4.09 Chile IPSA 3945.42 -0.32 7.21 Chile IGPA 19529.33 -0.28 7.59 Argentina MerVal 12876.09 -1.83 10.29 Colombia IGBC 9697.21 -0.26 13.45 Venezuela IBC 14623.35 0.9 0.24 Currencies daily % YTD % change change Latest Brazil real 3.4870 -0.63 13.19 Mexico peso 19.0100 -0.54 -9.36 Chile peso 689.3 -0.48 2.96 Colombia peso 3018.57 -1.43 4.99 Peru sol 3.3339 -0.72 2.40 Argentina peso (interbank) 13.7525 -0.04 -5.60 Argentina peso (parallel) 14.39 0.49 -0.83 (Reporting by Bruno Federowski; Additional reporting by Priscila Jordão; Editing by Jeffrey Benkoe)
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