EMERGING MARKETS-Latam currencies weaken on commods prices, Fed outlook

martes 2 de diciembre de 2014 13:29 GYT

SAO PAULO, Dec 2 (Reuters) - All major Latin American
currencies weakened against the dollar on Tuesday, with
investors eyeing slipping commodities prices and the outlook for
higher U.S. interest rates ahead.
    The region's stock markets were mostly lower, with the
broader MSCI Latin American stock index down
less than 1 percent.     
    Commodities prices are trading at their lowest
level in more than four years, with iron ore .IO62-CNI=SI and
oil both near five-year lows.
    Raw materials such as soybeans, copper and iron ore make up
the bulk of Latin American exports, and their prices tend to
influence local currencies. That is especially true for
countries with one main export, such as Chile, whose peso 
usually shifts with copper prices.
    The dollar also got a boost from comments from two Federal
Reserve officials who said the U.S. economy would benefit from a
decline in oil prices, which would not affect the central bank's
plans to lift interest rates.
    Brazil's Bovespa stock index was nearly unchanged
after four straight days of declines, while Mexico's IPC stock
index dropped to its lowest level in nearly six weeks. 
    Yields on Brazilian interest rate futures <0#DIJ:> rose
across the curve as investors shifted their expectations toward
a 50 basis point increase in the benchmark Selic interest rate
on Wednesday. Economists in a recent Reuters poll had been split
between rate hikes of 25 and 50 basis points, although traders
are now expecting more hawkish action following the appointment
of Brazil's new economic team last week.
    Key Latin American stock indexes and currencies at 1708 GMT:
 Stock indexes                        daily %    YTD %
                             Latest    change   change
 MSCI Emerging Markets        984.28    -0.08    -1.76
 MSCI LatAm                  2895.34    -0.68    -8.92
 Brazil Bovespa              52280.1     0.01     1.50
 Mexico IPC                 43150.91    -0.56     0.99
 Chile IPSA                  3966.03     0.19     7.21
 Chile IGPA                 19353.97     0.18     6.18
 Argentina MerVal           9504.439     1.47    76.30
 Colombia IGBC              11952.09     0.44    -8.56
 Peru IGRA                  15164.01    -0.13    -3.74
 Venezuela IBC               2989.53     0.04     9.24
 Currencies                           daily %    YTD %
                                       change   change
 Brazil real                  2.5758    -0.69    -8.50
 Mexico peso                  14.092    -0.69    -7.54
 Chile peso                      614    -0.08   -14.32
 Colombia peso                2302.5    -1.63   -16.09
 Peru sol                      2.942    -0.48    -5.06
 Argentina peso               8.5350    -0.03   -23.93
 Argentina peso                13.02    -1.31   -23.20
 (Reporting by Asher Levine)