EMERGING MARKETS-Brazil stocks dip, weighed down by Vale; real weakens

martes 11 de noviembre de 2014 09:21 GYT

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
 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
 Argentina peso                 12.6     3.97   -20.63
 (Reporting by Asher Levine Editing by W Simon)