EMERGING MARKETS-Latam currencies seesaw following 3-day rebound in risk appetite
By Bruno Federowski SAO PAULO, July 13 (Reuters) - Latin American currencies seesawed on Wednesday as global risk appetite faded following a three-day rally. Investors turned to country-specific issues as they waited for more clues over the possibility of fresh economic stimulus in countries such as Japan and the UK. Hopes for government action to curtail financial turmoil following Britain's decision to leave the European Union had lifted the Mexican peso in the last three trading days. But the currency weakened on Thursday on the back of lower crude prices after U.S. stockpiles fell less than expected last week. The Chilean peso neared its strongest levels in 2-1/2 months as solid China imports data boosted prices of copper past $5,000 a tonne. "Sentiment is muted and markets are focused on idiosyncratic factors today. It's a wait-and-see game," Glauber Romano, a forex trader with Intercam brokerage in Brazil, said. Caution lingered in Brazil ahead of a key vote to elect a new speaker of the lower house of Congress. The race has pitted interim President Michel Temer's allies against each other and raised concerns over his coalition. Brazil's benchmark Bovespa stock index fell 0.6 percent on profit-taking following a five-day streak of gains, weighed down by shares of state-controlled oil company Petróleo Brasileiro SA . Barclays analysts cut their recommendation for voting shares of Petrobras, as the company is known, to "underweight" from "equal weight." Non-voting shares were cut to "equal weight" from "overweight." Shares of steelmaker Companhia Siderúrgica Nacional SA dropped 5 percent after posting lofty gains over the previous sessions. The company will sell its stake in rival Usinas Siderúrgicas de Minas Gerais SA only after it minimizes losses on its investment, executives said on Wednesday. Key Latin American stock indexes and currencies at 1615 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 855.83 0.2 7.55 MSCI LatAm 2304.05 -0.75 26.87 Brazil Bovespa 53906.20 -0.65 24.35 Mexico IPC 46394.04 -0.08 7.95 Chile IPSA 4048.89 -0.27 10.02 Chile IGPA 20010.54 -0.24 10.24 Colombia IGBC 9792.69 0.05 14.57 Venezuela IBC 12108.45 1.55 -17.00 Currencies daily % YTD % change change Latest Brazil real 3.2892 0.22 20.00 Mexico peso 18.3865 -0.25 -6.29 Chile peso 656.7 0.43 8.07 Colombia peso 2936.62 -0.75 7.92 Peru sol 3.28 0.03 4.09 Argentina peso (interbank) 14.5800 -0.14 -10.96 Argentina peso (parallel) 15 0.60 -4.87 (Reporting by Bruno Federowski; Additional reporting by Paula Arend Laier; Editing by Richard Chang)
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