EMERGING MARKETS-Latam currencies, stocks down ahead of Fed policy minutes

miércoles 17 de agosto de 2016 12:23 GYT
 

By Bruno Federowski
    SAO PAULO, Aug 17 (Reuters) - Latin American currencies and
stocks fell on Wednesday after comments by a Federal Reserve
policymaker fostered bets that the minutes of the Fed's last
meeting will strike a hawkish tone.
    Many investors had believed the Fed would refrain from
hiking rates this year as it waits for more evidence about the
impact on the U.S. economy of Britain's June 23 vote to leave
the European Union.
    But those expectations took a beating on Tuesday after New
York Fed President William Dudley said an increase as soon as
next month could be in the cards. 
    Higher U.S. interest rates could drain funds away from
emerging markets, which often lure foreign investors with
greater yields.
    "NY Fed President Dudley's comments from Tuesday have
maintained a bias toward normalization and have helped provide
support to the broader U.S. dollar," Scotiabank analysts wrote
in a client note.
    Investors will parse the minutes from the Fed's last policy
meeting, due at 2 p.m. EDT (1800 GMT), for hints on the central
bank's strategy.
    On the Sao Paulo stock exchange, shares of electrical
utility companies mostly fell after the government suspended on
Tuesday an auction to sell state-controlled Centrais Elétricas
de Goiás SA. 
    Potential bidders failed to present some requirements by a
deadline, signaling feeble interest for the ailing power
distributor. 
    Companhia Energética de Minas Gerais, which plans
asset sales, led the losses, falling more than 5 percent,
outpacing the 1.2 percent decline in the benchmark Bovespa stock
index.
    
    Key Latin American stock indexes and currencies at 1535 GMT:
 Stock indexes                               daily %    YTD %
                                  Latest      change   change
 MSCI Emerging Markets               906.22    -1.02    15.29
                                                      
 MSCI LatAm                         2460.54       -2    37.21
 Brazil Bovespa                    58156.02    -1.20    34.15
 Mexico IPC                        48222.03    -0.27    12.20
 Chile IPSA                         4137.94    -0.78    12.44
 Chile IGPA                        20487.75    -0.62    12.87
 Argentina MerVal                  15273.85     0.28    30.82
 Colombia IGBC                      9893.57     0.29    15.75
 Venezuela IBC                     12113.74    -1.29   -16.96
                                                             
 Currencies                                  daily %    YTD %
                                              change   change
                                     Latest           
 Brazil real                         3.2235    -0.95    22.44
                                                      
 Mexico peso                        18.2350    -0.98    -5.51
                                                      
 Chile peso                           658.2    -1.03     7.82
 Colombia peso                       2915.5    -0.46     8.70
 Peru sol                             3.315    -0.24     2.99
                                                      
 Argentina peso (interbank)         14.6875    -0.10   -11.61
                                                      
 Argentina peso (parallel)            15.36     0.07    -7.10
                                                      
 

 (Reporting by Bruno Federowski; Editing by W Simon)