EMERGING MARKETS-Mexico shares hit new high but peso hurt by U.S. rates concerns

miércoles 20 de julio de 2016 12:49 GYT
 

By Bruno Federowski
    SAO PAULO, July 20 (Reuters) - Mexico's stock market rallied
for a fifth straight day to a fresh record intraday high on
Wednesday, but its peso currency weakened on concerns over
higher U.S. interest rates.
    Worries that the U.S. Federal Reserve could increase rates
as soon as September after a muted market reaction to Britain's
decision to leave the European Union weighed on the
high-yielding currency.
    But many traders would see higher Fed rates as an evidence
of strength in the world's biggest economy, spelling good news
for Mexican companies since the country mainly exports to the
United States.
    "Stock markets are brushing over the (Mexican) peso's
underperformance this year as signs that the U.S. economy is on
track to gain momentum," a trader focused on Latin America said
in New York.
    Also supporting demand for riskier assets were advances in
U.S. and European stock markets following upbeat
corporate results as well as a jump in crude prices 
.
    The Mexican peso  fell 0.5 percent to 18.59
pesos to the dollar, taking its year-to-date losses to 7.3
percent.  
    However, the Mexican benchmark stock index rose 0.4
percent to 47,268,86 points, trimming gains from its high of
47,290.25 points. 
    Brazil's benchmark Bovespa fell as much 0.8 percent
on profit-taking following 10 straight daily gains, but later 
pared losses to about 0.3 percent to 56517.71, cushioned by
rising financial shares.
    Goldman Sachs updated its assessment on Brazilian banks to
"neutral" from "cautious" and increased their price targets for
lenders Itaú Unibanco Holding SA, Santander Brasil SA
 and BTG Pactual SA. 
    Shares in Brazil's phone carrier Oi SA, which are
not part of the index, jumped as much as 22 percent after
Reuters reported a group of investors are working with an
investment bank in a takeover bid.  

    Key Latin American stock indexes and currencies at 1640 GMT:
 Stock indexes                                daily %    YTD %
                                               change   change
                                   Latest              
 MSCI Emerging Markets                869.11     0.11     9.32
 MSCI LatAm                          2391.59     0.43    30.15
 Brazil Bovespa                     56517.71    -0.32    30.38
 Mexico IPC                         47268.86     0.44     9.99
 Chile IPSA                          4140.56     0.02    12.51
 Chile IGPA                         20411.39     0.05    12.45
 Argentina MerVal                   15798.66    -0.21    35.32
 Venezuela IBC                      12244.16    -0.16   -16.07
                                                              
 Currencies                                   daily %    YTD %
                                               change   change
                                      Latest           
 Brazil real                          3.2483     0.31    21.51
 Mexico peso                         18.5900    -0.49    -7.32
 Chile peso                            649.9     0.17     9.20
 Peru sol                              3.309    -0.24     3.17
 Argentina peso (interbank)          15.0050     0.03   -13.48
                                                       
 Argentina peso (parallel)             15.21     0.13    -6.18
                                                       
 
 (Por Bruno Federowski; Editing by W Simon)