EMERGING MARKETS-U.S. data hurts Latam currencies; stocks fall on profit-taking

viernes 17 de abril de 2015 10:32 GYT

SAO PAULO, April 17 (Reuters) - Latin American currencies
weakened on Friday after United States inflation data upped bets
that the Federal Reserve would be less inclined to keep interest
rates unchanged.
    Equity markets across the region also fell, with the MSCI
Latin American stock index dropping for the
first session in four.
    Data on Friday showed U.S. consumer prices rose for a second
straight month in March, signs of some inflation that should
keep the Fed on course to start raising interest rates this
    Expectations of higher U.S. interest rates tend to weaken
demand for riskier assets such as Latin American securities.
    "Core inflation was greater than expected and that gives the
Fed more room to consider raising rates, considering recent data
have been disappointing," said João Paulo De Gracia Correa,
currency manager at brokerage Correparti in Curitiba, Brazil.
    The Brazilian real  snapped a three-session, 3
percent rally, shedding 0.85 percent to 3.04 per dollar.
    Brazil also released inflation data on Friday, with the
IPCA-15 index coming in above forecasts and reinforcing
expectations of further rate increases by the central bank in
coming months. 
    Yields on Brazilian interest rate futures contracts <0#DIJ:>
rose across the board, with the most heavily-traded contract,
Jan. 2017, adding 12 basis points to 13.16 percent.
    Other Latin American currencies such as the Mexican and
Chilean pesos  weakened more modestly. The Colombian
peso fell after a three-day rally.
    Colombia's government late on Thursday cut its economic
growth forecast for 2015 to between 3.5 percent and 4 percent,
down from its previous estimate of 4.2 percent due to the sharp
fall in oil prices, the country's main export.
    Brazil's benchmark Bovespa stock index pulled back
further from the 4-1/2 month high reached on Wednesday as
investors took profits from shares of widely-traded firms such
as banks and commodities exporters.
    Profit-taking also weighed on Mexico's IPC stock index
, which headed towards its biggest one-day loss in over
three weeks on Friday after closing at a nearly seven-month high
on Thursday.

    Key Latin American stock indexes and currencies at 1408 GMT:
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets         1045.03     -0.69     10.03
 MSCI LatAm                     2630.6     -1.08      -2.5
 Brazil Bovespa               53986.53     -1.26      7.96
 Mexico IPC                   45187.78     -0.64      4.73
 Chile IPSA                    4045.77     -0.57      5.06
 Chile IGPA                   19635.24      -0.5      4.05
 Argentina MerVal                    0         0   -100.00
 Colombia IGBC                10468.98     -0.41    -10.02
 Peru IGRA                    13133.35     -0.04    -11.23
 Venezuela IBC                 5358.14     -3.29     95.80
 Currencies                              daily %     YTD %
                                          change    change
 Brazil real                    3.0408     -0.85    -22.49
 Mexico peso                    15.262     -0.60    -14.62
 Chile peso                      612.5     -0.20    -14.11
 Colombia peso                 2481.19      0.03    -22.13
 Peru sol                        3.126     -0.19    -10.65
 Argentina peso                 8.8625      0.06    -26.74
 Argentina peso                  12.67      1.03    -21.07
 (Reporting by Asher Levine and Flavia Bohone; Editing by
Meredith Mazzilli)