EMERGING MARKETS-Brazil's real drops on interest rate outlook

jueves 4 de diciembre de 2014 11:52 GYT

SAO PAULO, Dec 4 (Reuters) - Brazil's currency weakened on
Thursday after the central bank signaled that interest rates
would not rise much further in coming months.
    Other currencies in the region were down slightly against
the dollar, while the MSCI Latin American stock index
 fell for the fifth session in six.
    Brazil's central bank raised interest rates by 50 basis
points to 11.75 percent late Wednesday, though signaled in its
decision statement that it could slow the pace of tightening at
coming meetings given the lagging effects of past rate
    "The market expected the central bank to be more hawkish in
the statement and now it needs to adjust," said Marcos Trabbold,
a trader with brokerage B&T in Sao Paulo.
    The Brazilian real weakened over 1 percent, while
yields on Brazilian interest rate futures <0#DIJ:> dropped
sharply at the short end of the curve.
    Brazil's benchmark Bovespa stock index also
declined, erasing the previous day's gains.
    Losses were driven by preferred shares of state-run
petroleum producer Petroleo Brasileiro SA a day after
Moody's Investors Service lowered the company's baseline credit
assessment, a gauge of the company's creditworthiness
independent of government support.
    Mexico's IPC stock index fell slightly, while Chile's
IPSA index was little-changed.
    Key Latin American stock indexes and currencies at 1548 GMT:
 Stock indexes                        daily %    YTD %
                             Latest    change   change
 MSCI Emerging Markets        987.08     0.12    -1.68
 MSCI LatAm                  2846.93    -2.16    -9.09
 Brazil Bovespa             51094.32    -2.34    -0.80
 Mexico IPC                 42846.19    -0.62     0.28
 Chile IPSA                  3950.53     0.06     6.79
 Chile IGPA                 19265.31     0.02     5.70
 Argentina MerVal            9778.67     1.16    81.39
 Colombia IGBC              11696.24    -2.13   -10.52
 Peru IGRA                  15078.02     -0.2    -4.29
 Venezuela IBC               2955.08        0     7.98
 Currencies                           daily %    YTD %
                                       change   change
 Brazil real                  2.5837    -1.10    -8.78
 Mexico peso                 14.1085    -0.05    -7.64
 Chile peso                    610.7    -0.08   -13.85
 Colombia peso               2285.49     0.11   -15.47
 Peru sol                      2.947    -0.10    -5.23
 Argentina peso               8.5425     0.00   -24.00
 Argentina peso                   13     0.38   -23.08

 (Reporting by Bruno Federowski Editing by W Simon)