EMERGING MARKETS-Latam currencies down on global growth concerns
By Bruno Federowski SAO PAULO, July 19 (Reuters) - Latin American currencies weakened on Tuesday as renewed concerns over global growth triggered profit-taking following a weeks-long rally. Traders cited a drop in German investor sentiment as well as a downward revision in the International Monetary Fund's estimates for global growth, both prompted by Britain's decision to leave the European Union. Worries that the U.S. Federal Reserve could increase rates this year if financial markets remain calm also drove investors to sell emerging market assets, which often depend on higher yields to lure foreign capital. "Markets had been too calm recently, which often leads to profit-taking," said Glauber Romano, an FX trader with Intercam brokerage in São Paulo. Both the Brazilian real and the Mexican peso weakened as much as 1 percent. Most stock markets in the region, however, were slightly higher. Mexico's benchmark IPC stock index rose to a new record high, supported by consumer discretionary shares such as SACI Falabella. Traders bet that economic strength in the United States could provide a boost to Latin America's second-largest economy. Brazil's Bovespa index was nearly flat as a rally in shares of state-controlled oil company Petróleo Brasileiro SA offset the negative tone abroad. Expectations that Petrobras, as the company is known, will sell part or all of its fuel distribution unit BR Distribuidora SA boosted shares to their highest level in a year. Shares in Oi SA, which are not part of the index, slumped as much as 21 percent on concerns that its debt burden could be higher than previously reported. The phone carrier filed for Brazil's biggest ever creditor protection in June. Key Latin American stock indexes and currencies at 1610 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 866.67 -0.4 9.57 MSCI LatAm 2374.78 -0.41 30.32 Brazil Bovespa 56418.05 -0.12 30.15 Mexico IPC 47038.01 0.16 9.45 Chile IPSA 4129.17 0.41 12.20 Chile IGPA 20356.66 0.36 12.15 Argentina MerVal 16110.27 0.69 37.99 Colombia IGBC 9931.17 -0.18 16.19 Venezuela IBC 12242.70 -1.37 -16.08 Currencies daily % YTD % change change Latest Brazil real 3.2781 -0.87 20.41 Mexico peso 18.5605 -0.93 -7.17 Chile peso 651.4 -0.45 8.95 Colombia peso 2932.17 -0.39 8.09 Peru sol 3.292 -0.27 3.71 Argentina peso (interbank) 15.2375 -0.51 -14.80 Argentina peso (parallel) 15.31 0.52 -6.79 (Reporting by Bruno Federowski; Editing by Paul Simao)
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