EMERGING MARKETS-Latam stocks, currencies fall as Brexit woes linger
By Bruno Federowski SAO PAULO, July 6 (Reuters) - Latin American stocks and currencies fell on Wednesday as traders continued to fret over the fallout from Britain's decision to leave the European Union. Financial market volatility stemming from Britain's June 23 referendum raised worries about global financial stability, putting central banks on alert. Mexico's central bank hiked interest rates more aggressively than expected last week to curb currency weakness, but the peso nevertheless weakened for a fourth consecutive trading day on Wednesday. The Brazilian real also declined for a fourth straight session, weighed down by central bank intervention. The bank resorted to purchasing dollars in futures markets after the real closed June with its biggest monthly advance in 13 years. Also pressuring demand for Brazilian assets were concerns that interim President Michel Temer's government could announce an unambitious fiscal target for 2017. "If next year's primary deficit looks like this year's it will be horrendous. It would raise doubts about a lack of fiscal effort," said Arnaldo Curvello, Ativa brokerage head of asset management. Three government officials told Reuters on Tuesday that Brazil will set a 2017 primary budget deficit target smaller than the 170.5 billion reais ($51 billion) expected for this year. Shares of education companies were among the biggest losses in Brazil's Bovespa benchmark stock index on lingering uncertainty over corporate deals in the sector. Shares of Estácio Participações SA fell 3.4 percent after its second largest shareholder resigned as chief executive officer following a month-long bidding battle for Brazil's No. 2 private college operator. Zaher will take up a position in the company's board, Estácio said in a statement. Kroton Educacional SA, whose bid for Estácio received the board's seal of approval on Thursday, fell 2.7 percent. Key Latin American stock indexes and currencies at 1530 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 818.71 -1.56 4.73 MSCI LatAm 2182.37 -2.13 21.87 Brazil Bovespa 51122.12 -1.39 17.93 Mexico IPC 45261.81 -1.22 5.32 Chile IPSA 4007.02 -0.28 8.88 Chile IGPA 19784.34 -0.21 9.00 Argentina MerVal 14491.29 -2.13 24.12 Colombia IGBC 9673.33 -0.14 13.17 Venezuela IBC 11594.66 -7.3 -20.52 Currencies daily % YTD % change change Latest Brazil real 3.3294 -0.90 18.55 Mexico peso 18.8455 -0.16 -8.57 Chile peso 665.4 -0.36 6.66 Colombia peso 3007.52 -0.88 5.38 Peru sol 3.278 0.18 4.15 Argentina peso (interbank) 14.7550 0.32 -12.01 Argentina peso (parallel) 14.88 0.81 -4.10 (Reporting by Bruno Federowski; Additional reporting by Flavia Bohone and Paula Arend Laier; Editing by Frances Kerry)
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