EMERGING MARKETS-Latam currencies weaken as oil slumps again

martes 2 de febrero de 2016 11:06 GYT

By Bruno Federowski
    SAO PAULO, Feb 2 (Reuters) - Latin American currencies
weakened on Tuesday as fading expectations of a deal to cut
global oil production drove crude prices down for a second day
in a row.
    Oil prices had rebounded last week on hopes of a deal
between OPEC and Russia to cut output. A global supply glut and
concerns over the demand outlook have kept crude prices near
12-year lows.
    The Colombian peso slumped almost 2 percent, while
the Mexican peso fell 0.9 percent following a local
market holiday on Monday.
    "Markets are still focused on oil prices and the situation
is still unfavorable for risky assets," analysts from Guide
Investimentos wrote in a client note.
    Weak demand for high-yielding assets also hit Chile's peso
, but losses were limited by higher copper prices. The
country's main export hit a four-week high on Tuesday, helped by
bets on further supply cuts. 
    The Brazilian real weakened 0.7 percent and the
country's Bovespa stock index fell 2.7 percent.
    Shares of Itau Unibanco Holding SA dropped 5.9
percent after Brazil's biggest private bank announced plans to
boost loan-loss provisions faster than rivals and slow loan
disbursements this year. 
    Latin American stock indexes and currencies at 1425 GMT:
 Stock indexes                               daily %     YTD %
                                              change    change
 MSCI Emerging Markets               730.73    -1.62     -6.47
 MSCI LatAm                         1719.71    -1.71     -4.39
 Brazil Bovespa                    39486.69    -2.67     -8.91
 Chile IPSA                         3679.14    -0.76     -0.03
 Chile IGPA                        18130.87    -0.66     -0.11
 Venezuela IBC                     14307.67    -1.96     -1.92
 Currencies                                  daily %     YTD %
                                              change    change
 Brazil real                         3.9848    -0.68     -0.95
 Mexico peso                        18.3975    -0.86     -6.35
 Chile peso                           713.5    -0.21     -0.53
 Colombia peso                      3382.65    -1.77     -6.31
 Peru sol                            3.4901    -0.20     -2.18
 Argentina peso (interbank)         14.1500    -0.14     -8.25
 Argentina peso (parallel)            14.24     0.21      0.21
 (Reporting by Bruno Federowski; Editing by Paul Simao)