EMERGING MARKETS-Latam currencies slip on global growth concerns

martes 19 de julio de 2016 16:43 GYT

(Updates prices)
    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, but pared losses. Most stock
markets in the region, however, were slightly higher.
    Mexico's benchmark IPC stock index rose to a new
record high, supported by shares in bank Banorte 
and broadcaster Televisa. Traders bet that economic
strength in the United States could provide a boost to Latin
America's second-largest economy.
    Brazil's Bovespa index rose 0.38 percent 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. 

    Key Latin American stock indexes and currencies at 2022 GMT:
 Stock indexes                             daily %     YTD %
                               Latest       change    change
 MSCI Emerging Markets            867.75     -0.27      9.57
 MSCI LatAm                      2390.94      0.27     30.32
 Brazil Bovespa                 56698.06      0.38     30.61
 Mexico IPC                     47060.57      0.21      9.49
 Chile IPSA                      4139.71      0.67     12.54
 Chile IGPA                     20401.05      0.58     12.44
 Argentina MerVal               15776.67     -1.39     35.06
 Colombia IGBC                   9930.33     -0.18     15.89
 Venezuela IBC                  12263.36     -1.21    -15.94
 Currencies                                daily %     YTD %
                                            change    change
 Brazil real                      3.2573     -0.23     21.55
 Mexico peso                     18.5395     -0.82     -7.06
 Chile peso                          651     -0.38      9.02
 Colombia peso                   2928.05     -0.25      8.24
 Peru sol                          3.301     -0.55      3.42
 Argentina peso (interbank)      14.9900      1.13    -13.39
 Argentina peso (parallel)         15.18      1.38     -5.99
 (Reporting by Bruno Federowski; Editing by Paul Simao and Diane