EMERGING MARKETS-Latam markets slide as U.S. data weigh

miércoles 15 de octubre de 2014 12:43 GYT
 

SAO PAULO, Oct 15 (Reuters) - Latin American financial
markets sank on Wednesday after weak U.S. data stoked global
economy worries and sapped demand for higher-risk emerging
market assets.
    Brazil's real and Mexico's peso both weakened
against the dollar, while the MSCI Latin American stock index
 was headed for its worst one-day drop since June
2013, mostly due to the sharp fall in Brazilian shares.
    Data on Wednesday showed U.S. retail sales declined in
September while producer prices fell, casting a pall over hopes
for a stronger recovery in the world's largest economy.
 
    Latin American assets fell alongside global equities markets
as investors moved into safer securities such as European
government bonds.
    Brazil's Bovespa stock index sank nearly 4 percent
with shares of state-run oil producer Petroleo Brasileiro SA
, known as Petrobras, down 6 percent.
    Traders said part of the day's decline was due to
profit-taking following a recent rally. The Bovespa rose 4.9
percent over the previous two sessions, driven by enthusiasm
over the election chances of market-friendly presidential
candidate Aecio Neves.
    Traders said the expiration of index futures contracts on
Wednesday was also behind the drop as heavily-weighted shares
weighted on the Bovespa index as a whole.
    Mexico's IPC stock index, which tends to track the
economic outlook of the United States - the country's biggest
trading partner - dropped about 1 percent.
    In currency markets, the Brazilian real  
weakened past 2.44 per dollar for the first time in over a week.
Part of the decline was based on expectations for electoral
polls due to be released after market close, traders said.
    Investors believe a Neves victory would instill market
confidence in Brazil's economy and spur higher demand for local
assets, while a win by President Dilma Rousseff would have the
opposite effect.
    Brown Brothers Harriman analysts see technical support for
the real near 2.40 and 2.35 per dollar below that, with
resistance near 2.45 and 2.50, according to a client note on
Wednesday.
    Elsewhere in Latin America, Chile's peso was little
changed, while the Mexican peso touched its weakest level in
nearly nine months.
    "(Mexico's peso) was of course meant to benefit the most
from U.S. strength and is therefore a natural underperformer,"
Citi analyst Dirk Willer wrote on Wednesday.
    
    Key Latin American stock indexes and currencies at 1602 GMT:
    
 Stock indexes              Latest      Daily  YTD pct
                                          pct   change
                                       change  
 MSCI Emerging Markets           982    -1.02    -1.06
                                               
 MSCI LatAm                 3,155.73    -3.78     2.46
                                               
 Brazil Bovespa            55,818.11    -3.79     8.37
 Mexico IPC                42,772.68    -0.94     0.11
 Chile IPSA                 3,802.34    -1.14     2.79
 Chile IGPA                18,699.85    -0.97     2.59
 Argentina MerVal           9,518.71    -3.79    76.57
                                               
 Colombia IGBC             12,737.45     -1.1    -2.55
 Peru IGRA                 15,581.99    -0.22    -1.09
 Venezuela IBC              3,028.79     4.77    10.68
                                                      
 Currencies                   Latest    Daily  YTD pct
                                          pct   change
                                       change  
 Brazil real                  2.4375    -1.58    -3.31
 Mexico peso                 13.5623    -0.85    -3.92
 Chile peso                      588    -0.05   -10.53
 Colombia peso              2,059.09    -0.51    -6.17
 Peru sol                      2.907    -0.14    -3.92
 Argentina peso               8.4750    -0.03   -23.39
 (interbank)                                   
 Argentina peso                 14.6     1.16   -31.51
 (parallel)                                    
 
 (Reporting by Asher Levine, editing by G Crosse)