EMERGING MARKETS-Brazil stocks up as higher iron ore prices lift Vale
By Bruno Federowski and Paula Arend Laier SAO PAULO, July 26 (Reuters) - Brazilian equities rose on Tuesday as higher prices of iron ore lifted shares of miner Vale SA following a heavy batch of corporate reports. Iron ore futures listed in China rose more than 2 percent on Tuesday as steel prices recovered from a steep fall last week. The move lifted stocks of miners and steel makers, with Vale the biggest boost to Brazil's benchmark Bovespa index. Shares in wireless carrier TIM Participações SA also ranked among the biggest gainers after falling as much as 1.3 percent earlier in the day. TIM, a unit of Telecom Italia SpA, posted an 85 percent drop in second-quarter net income and announced a cut in its investment plans on Monday. Nevertheless, analysts at Credit Suisse said the results were marginally positive, citing a slower pace of decline in revenue and Ebitda. In a conference call to discuss the results, the company's chief executive said he expects ongoing efforts to cut costs to generate about 1.7 billion reais ($518 million) in savings for the three-year period ending in 2018. In Mexico, shares of OHL Mexico shot up 13 percent, their biggest daily gain on record, on local news reports that an Australian fund could make an offer for a stake in the company, a unit of Spanish builder OHL. But the Mexican benchmark index IPC seesawed as traders avoided making big bets ahead of this week's U.S. Federal Reserve and Bank of Japan policy meetings. Key Latin American stock indexes and currencies at 1555 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 871.01 0.22 9.44 MSCI LatAm 2375.63 0.19 29.59 Brazil Bovespa 57090.34 0.38 31.70 Mexico IPC 47106.54 -0.05 9.61 Chile IPSA 4142.10 -0.06 12.55 Chile IGPA 20447.89 -0.04 12.65 Argentina MerVal 15802.18 0.57 35.35 Colombia IGBC 9756.99 -0.31 14.15 Venezuela IBC 12225.46 -1.9 -16.20 Currencies daily % YTD % change change Latest Brazil real 3.2757 0.48 20.49 Mexico peso 18.7925 -0.06 -8.31 Chile peso 660.5 -0.27 7.45 Colombia peso 3061.77 -1.56 3.51 Peru sol 3.36 -0.27 1.61 Argentina peso (interbank) 14.9350 0.17 -13.07 Argentina peso (parallel) 15.48 0.58 -7.82 (Reporting by Bruno Federowski and Paula Arend Laier; Editing by Dan Grebler)
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