EMERGING MARKETS-Brazil stocks dip, weighed down by Vale; real weakens
SAO PAULO, Nov 11 (Reuters) - Brazilian equity markets fell on Tuesday, driven by losses in mining firm Vale SA as concerns over low iron-ore prices continued to weigh on the company's earnings outlook. The broader MSCI Latin American stock index dropped about 1 percent. Most currencies in the region were little changed, though Brazil's real erased the previous session's gains. Brazil's Bovespa stock index slid 0.44 percent, the fourth session in five of declines. On Tuesday, the fall was mostly due to a 3 percent drop in shares of Vale, a heavily-weighted iron-ore producer. The stock's performance tends to track iron ore prices .IO62-CNI=SI, which are currently hovering at five-year lows. Vale's preferred shares are down 30 percent over the past four months and are currently at their lowest since early 2009. The stock took a further hit on Tuesday after Citigroup analysts lowered their recommendation of Vale shares to "sell," citing their expectations that iron-ore prices will fall to an average of $65 per tonne in 2015 and 2016. The real weakened about 0.5 percent against the dollar after two days of modest gains. Most analysts agree that the currency will continue to weaken further into 2015, according to a recent central bank survey. Investors are concerned that needed economic reforms may not materialize in the short-term and that higher interest rates in the United States could sap demand for local assets. Elsewhere in Latin America, Chile's peso fell on lower prices for copper, the country's main export. Key Latin American stock indexes and currencies at 1252 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 993.16 -0.45 -0.5 MSCI LatAm 2992.16 -1.03 -5.54 Brazil Bovespa 52493.37 -0.44 1.91 Mexico IPC 0 0 -100.00 Chile IPSA 3887.21 -0.08 5.08 Chile IGPA 18974.31 -0.07 4.10 Argentina MerVal 0 0 -100.00 Colombia IGBC 13124.85 0 0.41 Peru IGRA 0 0 -100.00 Venezuela IBC 0 0 -100.00 Currencies daily % YTD % change change Latest Brazil real 2.5650 -0.64 -8.12 Mexico peso 13.6066 0.01 -4.24 Chile peso 590.2 -0.59 -10.86 Colombia peso 2107.25 0.04 -8.32 Peru sol 2.927 0.07 -4.58 Argentina peso 8.5075 0.03 -23.68 (interbank) Argentina peso 12.6 3.97 -20.63 (parallel) (Reporting by Asher Levine Editing by W Simon)
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