EMERGING MARKETS-Brazil stocks gain on poll expectations; Embraer rises on orders

lunes 14 de julio de 2014 12:40 GYT

SAO PAULO, July 14 (Reuters) - Brazilian stocks rose on
Monday as investors bet that Brazil's failure to win the soccer
World Cup will lead to a decline in President Dilma Rousseff's
approval ratings ahead of October elections.
    The broader MSCI Latin American stock index 
posted its biggest one-day rise in nearly a month, though most
currencies in the region were little changed. 
    Two Brazilian research firms are expected to release
electoral polls this week. In the past, declines in Rousseff's
approval rating have driven up shares of state-run enterprises,
as many investors believe a new administration would enact
policies that are more favorable to minority shareholders. 
    "Brazil's elimination from the World Cup will shift
attention back to the polls and the risk of declining support
for Rousseff on what is still weak economic growth," wrote
Siobhan Morden, head of Latin America strategy at Jefferies. 
    Gains in Brazil's Bovespa stock index were led by a
4 percent gain in state-run oil producer Petroleo Brasileiro SA
. The shares were further boosted after Goldman Sachs
placed the shares on its "Latam Spotlight List" on Monday.
    Planemaker Embraer SA saw its shares reach an
all-time high after the company said on Monday that it booked
its strongest commercial deliveries in two years and rebuilt its
order book with a 50-jet deal. 
    Mexican shares rose their most in over a week, led by
mining firm Grupo Mexico.
    Chilean stocks sank their most in over two weeks
after the government lowered its forecast for 2014 gross
domestic product growth to 3.2 percent from a prior view of 3.4
    The Chilean peso also weakened slightly on the news,
while most other currencies in the region posted very slight
    Brazil's real  strengthened 0.27 percent against
the dollar, though traders warned that any moves in the currency
were likely to be kept in check by the central bank through
market intervention. Many believe the bank is most comfortable
with the real at the 2.20 to 2.25 per dollar level. 
    Key Latin American stock indexes and currencies at 1618 GMT:
 Stock indexes                             daily %     YTD %
                               Latest       change    change
 MSCI Emerging Markets           1063.01      0.41      5.58
 MSCI LatAm                      3473.36      1.17      7.26
 Brazil Bovespa                  55603.8      1.49      7.95
 Mexico IPC                     43804.46      0.74      2.52
 Chile IPSA                      3968.19     -0.16      7.27
 Chile IGPA                     19312.11     -0.03      5.95
 Argentina MerVal               8789.579     -0.36     63.04
 Colombia IGBC                  13843.41     -0.54      5.91
 Peru IGRA                      17171.25      0.11      9.00
 Venezuela IBC                   2120.85         0    -22.50
 Currencies                                daily %     YTD %
                                            change    change
 Brazil real                      2.2135      0.27      6.47
 Mexico peso                     12.9725      0.18      0.44
 Chile peso                          554      0.04     -5.04
 Colombia peso                    1857.2      0.01      4.03
 Peru sol                          2.783      0.14      0.36
 Argentina peso (interbank)       8.1550     -0.06    -20.39
 Argentina peso (parallel)            12     -0.17    -16.67
 (Reporting by Asher Levine; Editing by Chizu Nomiyama)