EMERGING MARKETS-Brazil's real swings on finance minister bets

lunes 17 de noviembre de 2014 11:35 GYT

SAO PAULO, Nov 17 (Reuters) - Brazil's currency whipsawed on
Monday, erasing early losses amid market chatter over potential
nominees for finance minister in President Dilma Rousseff's
second term. 
    Brazil's Bovespa stock index also fluctuated, while
Mexico's financial markets were closed for a holiday.
    The Brazilian real started the day about 0.5 percent
weaker, contributing to a roughly 5 percent decline this month.
In addition to a stronger dollar, investors have been cautious
about Brazilian assets as they remain in the dark about
Rousseff's choice for finance minister in her second term.
    "The markets have not been comfortable with the waiting game
on the cabinet reshuffle," wrote Siobhan Morden, head of Latin
America strategy at Jefferies in New York. "It is still an
ongoing debate whether Rousseff adopts moderate policy reversal
to prioritize fiscal discipline necessary to anchor inflation,
restore market confidence and encourage investment for higher
trend growth."
    Traders cited market speculation as the reason for the
real's move higher in the afternoon. Many recent swings in the
currency have been attributed to market chatter over the finance
minister nomination, which could signal Rousseff's approach to
the economy over the next four years.
    In addition, investors were watching a developing corruption
investigation at state-run oil producer Petroleo Brasileiro SA
, known as Petrobras. 
    "(The Petrobras issue) hurts the country's political
credibility and leaves investors more cautious about putting
their money here," said a local trader who asked not to be
identified because he is not authorized to speak with the press.
    The Bovespa index moved from slightly positive to slightly
negative in the afternoon. 
    Preferred shares of Petrobras dropped just under 2 percent,
offsetting a 3.3 percent rise in shares of state-run lender
Banco do Brasil SA.
    Elsewhere in Latin America, Chile's peso weakened
about 0.25 percent on lower prices for copper, the
country's main export. 
    Key Latin American stock indexes and currencies at 1519 GMT:
 Latin American market                                     
 prices from Reuters                             
 Stock indexes                          daily %       YTD %
                                         change      change
 MSCI Emerging Markets           985,9     -0,5       -1,18
 MSCI LatAm                     2919,1    -0,05       -8,75
 Brazil Bovespa                51616,3     -0,3        0,21
 Mexico IPC                   43372,01    -0,85        1,51
 Chile IPSA                    3925,96     0,16        6,13
 Chile IGPA                   19130,63     0,11        4,96
 Argentina MerVal             9730,649    -0,19       80,50
 Colombia IGBC                12932,53    -0,24       -1,06
 Peru IGRA                    15181,07    -0,65       -3,63
 Venezuela IBC                 2921,34     0,37        6,75
 Currencies                             daily %       YTD %
                                         change      change
 Brazil real                    2,5950     0,11       -9,18
 Mexico peso                   13,5775    -0,34       -4,03
 Chile peso                        595    -0,03      -11,58
 Colombia peso                    2164    -0,28      -10,72
 Peru sol                         2,93     0,03       -4,68
 Argentina peso (interbank)     8,5100     0,03      -23,71
 Argentina peso (parallel)       13,15     1,75      -23,95

 (Reporting by Asher Levine and Bruno Federowski; Editing by Dan