EMERGING MARKETS-Brazil markets take profits after poll-inspired rally
RIO DE JANEIRO, April 22 (Reuters) - Brazilian financial markets fell on Tuesday, as investors returned from a four-day weekend to pocket some recent gains inspired by bets that President Dilma Rousseff would lose support in an influential opinion poll. Other Latin American markets also lost ground as geopolitical concerns in Ukraine added to ongoing fears of an economic slowdown in China, the biggest consumer of the region's commodities exports. MSCI's benchmark stock index for Latin America dropped 0.53 percent despite a positive performance on Wall Street, while most regional currencies were in the red. Investors feared another round of Western sanctions against Russia after pro-Russian rebels seized control of eastern towns and cities in Ukraine. "Lack of agreement in Ukraine continues to worry investors, who are rushing to the dollar as they seek protection," said Reginaldo Siaca, a manager at the currency desk of Advanced brokerage in Sao Paulo. Brazilian stocks and currency also fell as investors pocketed part of Thursday's rally, which was sparked by hope that a drop in Rousseff's approval ratings would increase the chances of a more market-friendly government in 2015. Brazil's benchmark Bovespa index dropped 0.28 percent after jumping 1.8 percent on Thursday, shortly before pollster Ibope said a survey showed Rousseff's disapproval rating outstripped her approval rating for the first time. Although the poll confirmed market expectations, some analysts said Thursday's rally may have been exaggerated. Shares of state-run companies that are more vulnerable to government intervention were among the main decliners as they gave up part of Thursday's gains. Petrobras' preferred shares slid 2.3 percent after jumping 3.8 percent on Thursday. The state-run oil company, also known as Petroleo Brasileiro SA, has suffered from a government policy that forces it to import and sell fuels domestically at prices below international market levels. Preferred shares of Brazil's iron ore exporter Vale dropped 1.6 percent on news that mining in India's top iron ore exporting state is likely to restart in January 2015, increasing the global supply of the commodity. In the foreign exchange market, the Chilean peso ended 0.78 percent lower, the biggest drop among Latin American currencies. The currency slid as copper prices declined earlier in London on concern over China's demand for the metal, Chile's main export product. Key Latin American stock indexes and currencies at 1825 GMT: Stock indexes Latest Daily pct YTD pct change change MSCI Emerging Markets 1,008.75 -0.2 0.8 MSCI LatAm 3,256.59 -0.53 2.28 Brazil Bovespa 51,963.72 -0.28 0.89 Mexico IPC 40,525.4 -0.32 -5.15 Chile IPSA 3,874.66 -0.34 4.74 Chile IGPA 19,036.56 -0.22 4.44 Argentina MerVal 6,584.05 2.03 22.13 Colombia IGBC 13,652.58 -0.85 4.45 Peru IGRA 14,743.34 0.35 -6.41 Venezuela IBC 2,456.51 -0.64 -10.23 Currencies Latest Daily pct YTD pct change change Brazil real 2.2433 -0.38 5.06 Mexico peso 13.0478 -0.18 -0.14 Chile peso 562.1 -0.78 -6.40 Colombia peso 1,931 -0.65 0.05 Peru sol 2.783 -0.25 0.36 Argentina peso 8.0000 0.03 -18.84 (interbank) Argentina peso 10.35 0.48 -3.38 (parallel) (Reporting by Walter Brandimarte, Priscila Jordao and Bruno Federowski; editing by G Crosse)
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