EMERGING MARKETS-Latam stocks, currencies up after BoE rate cut

jueves 4 de agosto de 2016 13:18 GYT

By Bruno Federowski
    SAO PAULO, Aug 4 (Reuters) - Latin American stocks and
currencies advanced on Thursday after the Bank of England
unleashed sweeping measures to cushion the impact of Britain's
decision to leave the European Union.
    The BoE reduced interest rates 25 basis points to 0.25
percent and said it would buy 60 billion pounds ($78.8 billion)
in government bonds in newly printed money over the coming six
    "The Bank of England also left the door open to doing more.
Many expect another rate cut to bring rates closer to zero,"
Brown Brothers Harriman analysts wrote in a client note.
    Lower interest rates abroad spell good news for
high-yielding emerging market assets, which are well-positioned
to lure fresh capital injected by central banks in developed
    Brazil's equities and currency outperformed their peers,
with the benchmark Bovespa stock index jumping nearly
1.7 percent to its highest intraday peak since May 2015
supported by a rally in financial shares.
    Stocks in Braskem SA, Latin America's largest
petrochemical company, jumped more than 10 percent after it
posted a 15 percent rise in second-quarter earnings before
interest, taxes, depreciation and amortization (EBITDA) despite
a sharp drop in its net profit. 
    Meanwhile, Brazil's real strengthened 1.2 percent to reach a
five-week high, with traders citing strong dollar inflows to
companies in the country.
    Major companies such as miners Vale SA and
state-controlled oil company Petróleo Brasileiro SA 
have issued bonds in foreign debt markets recently as pledges of
fiscal austerity from interim President Michel Temer rekindled
demand for Brazilian assets.    
    Key Latin American stock indexes and currencies at 1620 GMT:
 Stock indexes                    Latest        Daily  YTD pct
                                                  pct   change
 MSCI Emerging Markets                878.05     1.14     9.32
 MSCI LatAm                         2,418.29     2.43    29.03
 Brazil Bovespa                    57,975.98     1.58    33.74
 Mexico IPC                        46,784.15    -0.13     8.86
 Chile IPSA                         4,116.13     0.45    11.84
 Chile IGPA                        20,352.21     0.39    12.12
 Argentina MerVal                  15,569.69      0.9    33.36
 Colombia IGBC                      9,625.40     0.28    12.61
 Venezuela IBC                     12,481.28     0.87   -14.44
 Currencies                           Latest    Daily  YTD pct
                                                  pct   change
 Brazil real                          3.2029     1.16    23.23
 Mexico peso                         18.8480     0.19    -8.58
 Chile peso                            656.2     0.06     8.15
 Colombia peso                      3,066.37     0.87     3.36
 Peru sol                              3.331     0.54     2.49
 Argentina peso (interbank)          14.8600     0.13   -12.63
 Argentina peso (parallel)             15.32     0.00    -6.85
 (Reporting by Bruno Federowski; Additional reporting by Paula
Arend Laier; Editing by W Simon)