EMERGING MARKETS-Latam currencies, stocks down ahead of Fed, BOJ policy meetings
By Bruno Federowski SAO PAULO, July 25 (Reuters) - Latin American currencies and stocks fell on Monday as traders avoided risky bets ahead of this week's Federal Reserve and Bank of Japan policy meetings. Though traders overwhelmingly bet the Fed will hold interest rates steady on Wednesday, growing expectations that it could tighten policy later this year weighed on appetite for high-yielding assets. Hopes that Japan's central bank could unveil a fresh batch of monetary stimulus on Friday did little to lift sentiment. Bank of Japan Governor Haruhiko Kuroda said on Saturday he would ease policy further if necessary. "This is a busy week so caution is warranted," José Carlos Amado, a trader with Spinelli brokerage in São Paulo, said. Currencies from oil-rich countries tumbled as crude prices slid to their lowest in 2-1/2 months on lingering concerns of global oversupply and weak demand. The Mexican peso weakened 1 percent to an over two week low, while the Colombian peso posted its sharpest daily drop in a month. In stock markets, Brazil's Bovespa benchmark index fell 0.7 percent after rising for six weeks in a row, its longest winning streak since 2010. Financials were among the biggest losers but shares of state-owned lender Banco do Brasil SA rose after Deutsche Bank analysts improved their recommendation for the stock to "buy" from "hold." Shares of Petróleo Brasileiro SA also advanced after the state-controlled oil company said it plans to sell voting control of Petrobras Distribuidora SA. A bidding round for a minority stake in the fuels retailer had failed to attract bids that met the needs of Petrobras, as the company is known. Key Latin American stock indexes and currencies at 1530 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 867.65 -0.19 9.46 MSCI LatAm 2366.37 -1.08 30.74 Brazil Bovespa 56623.70 -0.66 30.62 Mexico IPC 47381.51 -0.33 10.25 Chile IPSA 4133.07 -0.26 12.31 Chile IGPA 20409.14 -0.2 12.44 Argentina MerVal 15653.95 -1.21 34.08 Colombia IGBC 9802.69 -0.71 14.69 Venezuela IBC 12056.88 -3.42 -17.35 Currencies daily % YTD % change change Latest Brazil real 3.2868 -0.89 20.09 Mexico peso 18.7505 -1.07 -8.11 Chile peso 657.5 -1.08 7.94 Colombia peso 2997.8 -1.59 5.72 Peru sol 3.341 -0.60 2.18 Argentina peso (interbank) 14.9450 -0.17 -13.13 Argentina peso (parallel) 15.44 -0.06 -7.58 (Reporting by Bruno Federowski; Additional reporting by Paula Arend Laier; Editing by Meredith Mazzilli)
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