EMERGING MARKETS-Brazil's real pares recent gains, current account in focus

lunes 24 de noviembre de 2014 10:17 GYT
 

SAO PAULO, Nov 24 (Reuters) - Brazil's currency weakened on
Monday as investors digested worse-than-expected current account
data, pulling back part of a sharp Friday rise driven by the
outlook for a new economic policymaking team.
    Latin American stock markets were mostly flat, though
Brazil's Bovespa stock index managed to climb for a
fourth straight session.
    The Brazilian real opened stronger against the dollar
though began to weaken shortly thereafter, with traders pointing
to what may have been an overdone rally in the currency on
Friday.
    The real strengthened over 2 percent on Friday on media
reports that President Dilma Rousseff, long criticized by
investors for emphasizing a heavy government hand in the
economy, would name market-friendly economist Joaquim Levy as
finance minister in her second term.
    The nomination has not yet been confirmed by the government.
    Optimism over the economy's future was cooled somewhat on
Monday after Brazil posted its biggest current account deficit
on record for the month of October. 
    "A very strong deficit ended up weakening the real today as
it suggests (dollars) are leaving the country due to more modest
exports," said Andre Perfeito, chief economist at Gradual
Investimentos in Sao Paulo. "We had some very abrupt moves in
Brazil on Friday, which could also explain today's performance."
    Perfeito added that the Fed's stance on raising interest
rates remains the key factor in determining the direction of the
real in the medium to long term.
    Brazil's Bovespa stock index posted slight gains after the
finance minister reports drove a 5 percent rise on Friday.
State-run firms such as oil producer Petroleo Brasileiro SA
, known as Petrobras, climbed, offsetting a decline in
bank shares. Traders said the bank losses were mostly due to
profit-taking after Brazilian financial shares posted a
three-day 12.9 percent rally.
    
    Key Latin American stock indexes and currencies at 1356 GMT:
    
 Stock indexes                        daily %    YTD %
                             Latest    change   change
 MSCI Emerging Markets       1013.53     0.91     0.17
                                               
 MSCI LatAm                  3134.44     0.04    -2.11
                                               
 Brazil Bovespa             56277.86     0.35     9.26
                                               
 Mexico IPC                        -        -        -
                                               
 Chile IPSA                  3983.03    -0.13     7.67
                                               
 Chile IGPA                 19404.58    -0.09     6.46
                                               
 Argentina MerVal            9976.67     3.14    85.06
                                               
 Colombia IGBC              12949.38        0    -0.93
                                               
 Peru IGRA                  15326.92    -0.06    -2.71
                                               
 Venezuela IBC               2916.72        0     6.58
                                               
                                                      
 Currencies                           daily %    YTD %
                                       change   change
                              Latest           
 Brazil real                  2.5280    -0.33    -6.77
                                               
 Mexico peso                 13.6055     0.07    -4.23
                                               
 Chile peso                    593.1     0.24   -11.30
                                               
 Colombia peso                2150.5    -0.28   -10.16
 Peru sol                      2.911    -0.03    -4.05
                                               
 Argentina peso               8.5150     0.00   -23.75
 (interbank)                                   
                                               
 Argentina peso                13.33     1.28   -24.98
 (parallel)                                    
                                               
 
 (Reporting by Asher Levine; Editing by Chizu Nomiyama)