EMERGING MARKETS-Latam currencies slip as oil falls, Brexit fears reemerge
(Adds about stock recovery, updates prices) By Bruno Federowski SAO PAULO, June 16 (Reuters) - Latin American currencies fell on Thursday as investors returned their focus to a sharp fall in oil prices and the negative growth implications of Britain's possible exit from the European Union. However, Latin American stocks reversed earlier losses after campaigning for Britain's vote on whether to leave the EU was suspended following the murder of a British lawmaker. The Colombian peso was by far the biggest loser, falling more than 1.3 percent, as crude prices tumbled about 4 percent to a monthly 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. Britain's exit could undermine decades of European integration and stoke economic uncertainty. Recent polls suggested the support for the "Leave" campaign has been gaining momentum, with an Ipsos MORI poll from June 11-14 showing 53 percent of those likely to vote wanted to leave the bloc and 47 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. However, some traders interpreted the homicide of a British Member of Parliament on Thursday, just a week before the key "Brexit" vote, as making it more likely Britain would stay in the currency bloc. The news sent stock markets around the world higher, with Brazil's benchmark Bovespa stock index reversing earlier losses to close up 0.9 percent. Brazil's stocks were also boosted by a rally to nearly 5 percent in planemaker Embraer SA after Bank of America Merrill Lynch raised 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 1955 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 801.11 -0.88 1.77 MSCI LatAm 2082.24 0.62 13.09 Brazil Bovespa 49346.96 0.88 13.83 Mexico IPC 45219.40 0.46 5.22 Chile IPSA 3966.59 0.21 7.78 Chile IGPA 19618.68 0.18 8.08 Argentina MerVal 13069.94 -0.35 11.95 Colombia IGBC 9727.80 0.05 13.81 Venezuela IBC 14152.35 -2.35 -2.99 Currencies daily % YTD % change change Latest Brazil real 3.4690 -0.12 12.11 Mexico peso 18.9300 -0.12 -9.87 Chile peso 688.3 -0.44 3.02 Colombia peso 3015 -1.33 4.87 Peru sol 3.333 -0.69 2.37 Argentina peso (interbank) 13.9000 -1.11 -7.07 Argentina peso (parallel) 14.37 0.62 -0.70 (Reporting by Bruno Federowski; Additional reporting by Priscila Jordão and Anna Yukhananov in Mexico City; Editing by Jeffrey Benkoe and Diane Craft)
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