EMERGING MARKETS-Latam currencies up on commodities rebound, U.S. data; stocks fall

martes 2 de agosto de 2016 11:16 GYT

By Bruno Federowski
    SAO PAULO, Aug 2 (Reuters) - Most Latin American currencies
strengthened on Tuesday as prices of commodities rebounded and
weak inflation data boosted hopes that U.S. rates will take
longer to rise.
    But stock markets in the region fell, weighed down by
declines in Wall Street as well as another batch of corporate
    Prices of key Latin American exports such as iron ore,
copper and oil rose on Tuesday, with crude jumping as much as 2
percent in the day.
    Also fostering demand for high-yielding assets was a soft
reading for a key inflation gauge in June, which added to
concerns stemming from tepid U.S. growth data published on
    Traders bet the data boosted the case for keeping U.S. rates
low for longer. That could benefit currencies from emerging
markets, which often lure investors away from developed
economies with higher financial returns.
    The Mexican peso  bucked the bullish trend as
traders worried that economic weakness in the U.S., its main
trading partner, could translate into lower demand for its
    Most stock markets in the region were also lower as U.S.
stocks dropped sharply.
    Brazil's Bovespa stock index fell 1.3 percent,
pressured by shares of Cielo SA. Brazil's No. 1
credit card processor posted a slightly higher-than-expected
profit in the second quarter, but expenses weighed on its
earnings before interest, taxes, depreciation and amortization,
    Losses were limited by a rise in shares of Itaú Unibanco SA
 as traders cheered its efforts to curb expanses and
reclassify loans. The bank handily beat second-quarter profit
estimates and only slightly raised loan-loss provision
    Key Latin American stock indexes and currencies at 1505 GMT:
 Stock indexes                                daily %   YTD %
                                     Latest    change  change
 MSCI Emerging Markets                876.55    -0.68   11.13
 MSCI LatAm                          2342.25     -0.9   29.17
 Brazil Bovespa                     55989.89    -1.35   29.16
 Mexico IPC                         46498.42    -0.66    8.19
 Chile IPSA                          4093.67     -0.6   11.23
 Chile IGPA                         20255.02    -0.51   11.59
 Argentina MerVal                   15378.47    -0.41   31.72
 Colombia IGBC                       9599.74    -0.25   12.31
 Venezuela IBC                      12495.80    -0.35  -14.34
 Currencies                                   daily %   YTD %
                                               change  change
 Brazil real                          3.2552     0.44   21.25
 Mexico peso                         18.8930    -0.06   -8.80
 Chile peso                            654.7     0.43    8.40
 Colombia peso                       3076.02     0.42    3.03
 Peru sol                              3.345    -0.24    2.06
 Argentina peso (interbank)          14.8400     0.67  -12.52
 Argentina peso (parallel)              15.4     0.58   -7.34

 (Reporting by Bruno Federowski; Additional reporting by Paula
Arend Laier; Editing by Jonathan Oatis)