EMERGING MARKETS-Latam FX weakens on oil slump, global growth worries

martes 19 de enero de 2016 18:31 GYT

By Bruno Federowski
    SAO PAULO, Jan 19 (Reuters) - Latin American currencies
weakened on Tuesday as worries about slumping oil prices and a
global economic slowdown pushed investors to sell riskier
    The Mexican peso shed 0.4 percent against the dollar
while the Brazilian real bid 0.5 percent weaker. 
    U.S. crude oil dropped 3 percent, and U.S. stock
markets retreated from early gains.  
    Emerging market currencies have been hammered so far this
year amid concerns about slower growth in China, the world's
second-biggest economy, and a slump in global oil prices 
to a 12-year low. 
    Both Mexico and Brazil are major oil producers.
    Stock markets around the region held onto slim gains after
weak data in China stoked hopes of more economic stimulus from
the government to prop up the slowing economy. 
    Yields paid on short-term Brazilian interest rate futures
contracts in the country <0#2DIJ:> dropped sharply ahead of a
monetary policy announcement from the country's central bank on
    Traders bet that Brazil's central bank could raise its
benchmark rate less than expected or keep it stable after the
bank's president said he would take into account a "significant"
cut in the country's growth outlook. 
    "It is strange that they release a statement like this on
the first day of a (two-day) policy meeting, to say the least,"
said Arlindo Sa, head of interest rates trading at Icap
brokerage in Sao Paulo. "I still believe that the chances of an
increase are bigger but I would not be surprised if rates are
left untouched."
    Latin American stock indexes and currencies at 1420 GMT:
 Stock indexes                                  daily %    YTD %
                                       Latest    change   change
 MSCI Emerging Markets                  714.37     1.56   -10.04
 MSCI LatAm                            1617.14     0.51   -11.62
 Brazil Bovespa                       38057.01     0.32   -12.21
 Mexico IPC                           40809.25      0.5    -5.05
 Chile IPSA                            3479.40     0.15    -5.46
 Chile IGPA                           17269.31     0.14    -4.86
 Argentina MerVal                      9801.27     0.45   -16.05
 Colombia IGBC                         8022.25      2.2    -6.14
 Venezuela IBC                        14465.42     6.41    -0.84
 (Reporting by Bruno Federowski; Editing by James Dalgleish)