EMERGING MARKETS-Brazil rate futures fall ahead of cenbank policy decision

miércoles 19 de octubre de 2016 11:18 GYT
 

By Bruno Federowski
    SAO PAULO, Oct 19 (Reuters) - Yields paid on Brazilian
interest rate futures fell on Wednesday as traders increased
bets that the central bank will cut rates aggressively after
market close.
    Weaker-than-expected data on industrial output and retail, a
surprising cut in fuel prices and lower inflation expectations
have supported forecasts of a 50 basis point cut in the Selic
rate to 13.75 percent. 
    A Reuters poll showed economists were split between a 25
basis point and a 50 basis point cut, with only four out of 50
expecting the central bank to stand pat. 
    Interest rate futures prices implied a higher chance of a 25
basis point cut, though bets on a sharper reduction have been
growing. 
    Brazil's currency and stocks rose, supported by global
appetite for risky assets as commodity prices rose. The
Brazilian benchmark Bovespa stock index advanced 0.2
percent to the highest since 2012.
    Shares of state-controlled oil company Petróleo Brasileiro
SA provided the biggest boost to the index following
a surprising drop in U.S. crude inventories.
    Positive investor sentiment also lifter most Latin American
currencies, such as the Chilean  and Mexican
pesos .
    
    Key Latin American stock indexes and currencies at 1510 GMT:
 Stock indexes                               daily %   YTD %
                                              change  change
                                  Latest              
 MSCI Emerging Markets               914.03      0.6   14.41
 MSCI LatAm                         2590.72     0.75   40.54
 Brazil Bovespa                    63893.97     0.18   47.39
 Mexico IPC                        48152.03      0.1   12.04
 Chile IPSA                         4229.58     0.65   14.93
 Chile IGPA                        21124.07      0.5   16.38
 Argentina MerVal                  18133.61      1.6   55.32
 Colombia IGBC                     10106.70     0.76   18.24
 Venezuela IBC                     13630.08     0.46   -6.57
                                                            
 Currencies                                  daily %   YTD %
                                              change  change
                                     Latest           
 Brazil real                         3.1674     0.48   24.61
 Mexico peso                        18.5790     0.16   -7.26
                                                      
 Chile peso                             666     0.33    6.56
 Colombia peso                      2909.17    -0.23    8.94
 Peru sol                             3.379     0.09    1.04
 Argentina peso (interbank)         15.2000     0.07  -14.59
                                                      
 Argentina peso (parallel)            15.57     0.45   -8.35
                                                      
 

 (Reporting by Bruno Federowski; Editing by Alistair Bell)