EMERGING MARKETS-Mexico currency, stocks rally as Trump outlook fades

lunes 10 de octubre de 2016 12:23 GYT

By Bruno Federowski
    SAO PAULO, Oct 10 (Reuters) - Mexico's currency and stocks
soared on Monday due to shrinking expectations that Republican
nominee Donald Trump could become the next U.S. President.
    Trump and Democratic nominee Hillary Clinton faced off in a
Sunday debate less than a month before the elections. It quickly
turned into an acrimonious discussion of a 2005 video that
emerged on Friday in which Trump uses vulgar language and talks
about groping women without consent. 
    Mexican markets have suffered whenever Trump seemed to gain
in the race as he pledged to curtail U.S. trade and financial
ties to the country.
    The Mexican peso  strengthened 2.3 percent to
its highest in a month. Mexico's benchmark IPC stock index
 rose 1.5 percent with all but two of 34 stocks gaining.
    Trading volumes were thin across the region due to the U.S.
Columbus Day holiday.
    In Brazil, traders avoided making big bets ahead of a
congressional vote on a proposed constitutional amendment
capping the growth of public spending. 
    Investors remained optimistic that the proposal would be
swiftly approved even after the office of the country's
prosecutor general questioned its legality. 
    Key Latin American stock indexes and currencies at 1610 GMT:
 Stock indexes                               daily %    YTD %
                                              change   change
 MSCI Emerging Markets               918.69     0.42     15.2
 MSCI LatAm                         2491.38      1.5    34.14
 Brazil Bovespa                    61470.06     0.59    41.80
 Mexico IPC                        48285.66     1.45    12.35
 Chile IPSA                         4075.68    -0.04    10.75
 Chile IGPA                        20317.35    -0.04    11.93
 Argentina MerVal                  17136.22    -0.04    46.77
 Colombia IGBC                      9977.03     0.13    16.73
 Venezuela IBC                     13397.62    -0.15    -8.16
 Currencies                                  daily %    YTD %
                                              change   change
 Brazil real                         3.2135     0.07    22.83
 Mexico peso                        18.8810     2.33    -8.74
 Chile peso                           669.8     0.00     5.96
 Colombia peso                       2925.5     0.00     8.33
 Peru sol                             3.393     0.27     0.62
 Argentina peso (interbank)         15.1800     0.33   -14.48
 Argentina peso (parallel)             15.5     0.45    -7.94

 (Reporting by Bruno Federowski; Editing by Meredith Mazzilli)