EMERGING MARKETS-Latam stocks, currencies fall ahead of Fed, BOJ meetings

lunes 25 de julio de 2016 17:50 GYT
 

(Adds closing stock indexes, details)
    By Bruno Federowski
    SAO PAULO, July 25 (Reuters) - Latin American currencies and
stocks ended mostly lower on Monday as traders avoided risky
bets ahead of this week's U.S. Federal Reserve and Bank of Japan
policy meetings.
    Traders overwhelmingly bet the Fed will hold interest rates
steady on Wednesday, growing expectations that it could tighten
policy later this year weighed on appetites for higher-yielding
but riskier emerging market assets. 
    In Mexico, the stock index closed down 0.86 percent, partly
driven by Grupo Mexico which saw a 3.21 percent
drop in its share price after posting weaker second-quarter
results.
    Currencies from oil-rich countries tumbled as crude prices 
slid to their lowest since early May on lingering concerns of
global oversupply and weak demand. 
    The Mexican peso weakened more than 1 percent to an
over two-week low, while the Colombian peso hit its
lowest level in a month.
    Brazil's benchmark Bovespa stock index closed more
than 0.2 percent lower 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."

    Key Latin American stock indexes at 2100 GMT:
    
 Stock indexes                    Latest       Daily  YTD pct
                                                 pct   change
                                              change  
 MSCI Emerging Markets               869.10    -0.02     9.44
 MSCI LatAm                        2,371.19    -0.88    29.59
 Brazil Bovespa                   56,872.73    -0.23    31.19
 Mexico IPC                       47,130.41    -0.86     9.66
 Chile IPSA                        4,144.46     0.02    12.61
 Chile IGPA                       20,455.55     0.02    12.69
 Argentina MerVal                 15,712.61    -0.84    34.58
 Colombia IGBC                     9,786.84    -0.87    14.50
 Venezuela IBC                    12,462.66    -0.17   -14.57
 
 (Reporting by Bruno Federowski, additional reporting by Paula
Arend Laier, Miguel Gutierrez, editing by G Crosse)