EMERGING MARKETS-Latam markets strengthen after more dovish Fed
(Recasts with Fed move, adds closing prices) By Bruno Federowski SAO PAULO, Jan 27 (Reuters) - Latin American currencies and stock markets largely strengthened on Wednesday after the U.S. Federal Reserve held interest rates unchanged and expressed caution over recent market turmoil. The decision by the Fed's rate-setting committee suggests the central bank may slow its pace of rate increases this year, easing pressure on emerging markets currencies that suffer outflows triggered by higher rates in the world's largest economy. The Brazilian stock market jumped 2.3 percent, its sharpest rise in more than a month, while the real strengthened 0.4 percent. In Mexico, the second-biggest economy in the region, the IPC stock index rose 0.4 percent while the peso was mostly flat. The decision by the bank's rate-setting committee was widely expected after a month-long plunge in U.S. and world equities raised concerns of an abrupt global slowdown. A surge in oil futures on Wednesday also drove buying of riskier assets, after Russia signaled it may cooperate with OPEC. That raised hopes of a deal that would reduce global oversupply, which sent oil prices to the lowest levels in over a dozen years last week. Despite the day's gains, Latin American currencies and stocks remain down for the year due to the fall in oil prices and concerns about China, the world's top consumer of commodities. Many of the region's economies are commodity exporters. Latin American stock indexes and currencies at 2200 GMT: Stock indexes Latest Daily YTD pct pct change change MSCI Emerging Markets 714.56 0.88 -10.81 MSCI LatAm 1,637.19 1.02 -11.43 Brazil Bovespa 38,376.37 2.34 -11.47 Mexico IPC 42,109.89 0.42 -2.02 Chile IPSA 3,546.20 0.15 -3.64 Chile IGPA 17,547.63 0.12 -3.33 Argentina MerVal 10,786.58 2.79 -7.61 Colombia IGBC 8,402.04 0.39 -1.70 Venezuela IBC 14,301.95 1.93 -1.96 Currencies Latest Daily YTD pct pct change change Brazil real 4.0843 0.41 -3.48 Mexico peso 18.46 0.03 -7.14 Chile peso 714.6 0.40 -0.69 Colombia peso 3,354.2 0.20 -5.83 Peru sol 3.4641 -0.03 -1.47 Argentina peso (interbank) 13.8650 -0.11 -6.80 Argentina peso (parallel) 14.32 0.28 -0.35 (Additional reporting by Anna Yukhananov in Mexico City; Editing by Nick Zieminski and Tom Brown)
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