EMERGING MARKETS-Mexico peso hits 2-year low, Brazil real slumps

miércoles 15 de octubre de 2014 17:28 GYT
 

(Recasts throughout, adds closing prices)
    SAO PAULO, Oct 15 (Reuters) - Mexico's peso sank to a more
than two-year low on Wednesday on signs of slowing global
economic growth, while Brazil's real tumbled on concern a
leading presidential candidate could end a currency intervention
program.
    The Brazilian real  weakened by its most in
more than a year, sliding past 2.45 per dollar for the first
time in over a week.
    A top economic adviser for presidential candidate Aecio
Neves said that, if elected, Neves would end daily sales of
currency swaps that have been supporting the real against the
dollar. 
    Swaps are derivatives that provide investors with protection
against currency losses. The central bank has been regularly
selling those contracts for more than a year and the existing
stock of swaps amounts to nearly $100 billion.    
    Also on Wednesday, data showed U.S. retail sales declined in
September, casting doubt on the strength of a recovery in the
world's largest economy while investors also see slowing growth
in China and Europe. 
    "There is a little bit of panic, of worry about global
economic data," said Cristian Lancheros, a currency analyst at
brokerage Acciones y Valores in Colombia.
    Colombia's peso slumped 1 percent against the
dollar to its weakest in five years while the MSCI Latin
American stock index fell nearly 4 percent in
its biggest one-day percentage drop since June 2013.
    Mexico's peso lost 0.7 percent to 13.5380 per dollar,
stabilizing a bit after plunging just past 13.62 to its weakest
level since July 2012. 
    "There is some worry about contagion ... from Europe's
market to the United States, and obviously it's the same for
Mexico," said Rafael Camarena an economist at Santander.
    Mexico's economy is deeply linked to its northern neighbor,
the destination of nearly 80 percent of local exports.
    Global markets churned as investors worried about a glut of
oil supply that has slammed crude prices and the Ebola outbreak.
    Brazil's Bovespa stock index sank more than 3
percent, leading losses in Latin American stocks.
    Traders said part of the day's decline was due to expiration
of index futures contracts and profit-taking following a nearly
5 percent rally in the Bovespa on bets that market-friendly
candidate Neves could win the presidency. 
    Mexico's IPC stock index, which tends to track the
economic outlook of the United States slipped to a more than
three month low.   
    Key Latin American stock indexes and currencies at 2100 GMT:
   
 Stock                        Latest     daily %   YTD % change
   indexes                               change    
 MSCI LatAm                   3,156.67   -3.75     2.46
                                                   
 Brazil Bovespa               56,135.27  -3.24     8.99
 Mexico IPC                   42,984.95  -0.45     0.60
 Chile IPSA                   3,791.28   -1.43     2.49
 Chile IGPA                   18,655.01  -1.21     2.35
 Argentina MerVal             9,653.11   -2.43     79.06
 Colombia IGBC                12,821.09  -0.45     -1.91
 Peru IGRA                    15,819.13  1.3       0.42
 Venezuela IBC                2,890.93   0         5.64
                                                   
 Currencies                   Latest     daily %   YTD % change
                                         change    
 Brazil real                  2.4570     -2.36     -4.08
 Mexico peso                  13.5300    -0.61     -3.70
 Chile peso                   587.5000   0.03      -10.45
 Colombia peso                2068.3500  -0.94     -6.59
                                                   
 Peru sol                     2.9070     -0.14     -3.92
 Argentina peso (interbank)   8.4725     0.00      -23.37
                                                   
 Argentina peso (parallel)    14.6800    0.61      -31.88
                                                   
                                                   
 

 (Reporting by Michael O'Boyle, Alexandra Alper and Nelson
Bocanegra; Editing by Cynthia Osterman)