EMERGING MARKETS-Latin American currencies spike as Fed fuels risk appetite

viernes 20 de marzo de 2015 11:41 GYT
 

SAO PAULO, March 20 (Reuters) - Latin American currencies
jumped on Friday after investors began interpreting the Fed's
recent policy signals as an invitation to step back into riskier
assets.
    Equities also rose, with the MSCI Latin American stock index
 notching its biggest one-day advance in over a
month.
    The U.S. Federal Reserve this week led investors to expect a
more dovish policy stance than many had originally expected,
spurring portfolio inflows into riskier markets that offer
higher returns. 
    In addition, concern over the broader impact of Greece's
financial crisis eased on Friday when the nation said it was
moving swiftly to meet creditors' demands for a detailed
economic reform plan.
    "It's mostly a spillover from what we saw coming out of the
Fed," said Kathryn Rooney Vera, a strategist with Bulltick
Capital Markets in Miami. "The Fed is clear...when they start
tightening it will be so slow and mitigated that it will not
have a big immediate impact. The market sees that risk is indeed
attractive and there is a search for yield."
    The Brazilian real  nearly rolled back the
previous session's loss, strengthening to about 3.22 per dollar.
    Brazil's currency has weakened about 17.5 percent against
the dollar this year, however, as concerns over economic
recession and a potential sovereign credit downgrade weigh.
    "The whole world is selling dollars and the result is a
respite here," said Reginaldo Galhardo, head of currency trading
at Sao Paulo brokerage Treviso.
    Other Latin American currencies rose as well, with
Colombia's peso posting its biggest one-day gain in over
six weeks. The country's currency was also boosted by higher
prices for oil, its main export.
    Equities also rebounded on Friday, with Brazil's Bovespa
stock index erasing the previous session's loss.
    Shares of private education firm Estacio Participacoes SA
 jumped over 10 percent after the company released an
optimistic forecast for future growth.
    
    Key Latin American stock indexes and currencies at 1524 GMT:
    
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets          970.11      0.53      0.91
                                                  
 MSCI LatAm                    2467.06      2.78       -12
                                                  
 Brazil Bovespa               51781.54      1.63      3.55
                                                  
 Mexico IPC                   44269.05      0.34      2.60
                                                  
 Chile IPSA                    3884.62      0.55      0.87
                                                  
 Chile IGPA                   18931.29      0.45      0.32
                                                  
 Argentina MerVal             11380.89      2.08     32.66
                                                  
 Colombia IGBC                 9985.96      0.42    -14.17
                                                  
 Peru IGRA                    12629.37      0.38    -14.63
                                                  
 Venezuela IBC                 4706.02      0.03     21.96
                                                  
                                                          
 Currencies                              daily %     YTD %
                                          change    change
                                Latest            
 Brazil real                    3.2206      2.26    -17.48
                                                  
 Mexico peso                    15.066      1.39     -2.14
                                                  
 Chile peso                      634.7      0.80     -4.46
                                                  
 Colombia peso                 2588.24      1.61     -7.74
 Peru sol                         3.09      0.29     -3.59
                                                  
 Argentina peso                 8.7950      0.00     -2.79
 (interbank)                                      
                                                  
 Argentina peso                  12.77      0.70      9.63
 (parallel)                                       
                                                  
 
        

 (Reporting by Asher Levine and Bruno Federowski)