EMERGING MARKETS-Latam currencies weaken as oil prices resume slide

martes 23 de febrero de 2016 12:15 GYT
 

By Bruno Federowski
    SAO PAULO, Feb 23 (Reuters) - Latin American currencies
weakened on Tuesday as oil prices resumed their slide on doubts
that a potential output freeze would relieve global oversupply.
    Comments by the Saudi and Iranian oil ministers moderated
expectations that major oil producers would agree to freeze
production, driving down crude prices after a 5 percent jump on
Monday. 
    The slide pressured currencies such as the Mexican and
Colombian pesos , whose performance this year has
closely tracked volatile oil prices.
    Mexican growth slowed more than expected in the fourth
quarter on a steep industrial contraction, weighed down by
sinking production at state oil giant Pemex.
 
    However, both currencies remained far from all-time lows
reached earlier this year. Traders cited more interventionist
central bank policies in Colombia and Mexico last week aimed at
curbing foreign exchange weakness.
    In Brazil, traders also debated the fallout from the arrest
of João Santana, the architect of President Dilma Rousseff's
2010 and 2014 campaigns, as part of a sweeping corruption probe.
    Eurasia Group analysts said in a report that the arrest
increases the chances of an early presidential election, which
would be the "clearest pathway to structural economic reforms".
    They pointed out, however, that voters could also choose to
elect an anti-establishment candidate who would have difficulty
forging a coalition in Congress to pass fiscal reforms.
    Shares of state-controlled oil company Petroleo Brasileiro
SA fell as oil prices extended their losses, after
earlier rising as much as 4.8 percent.
    
    Latin American stock indexes and currencies at 1450 GMT:
 Stock indexes                               daily %    YTD %
                                              change   change
                                  Latest              
 MSCI Emerging Markets              745.01     -0.59    -5.63
 MSCI LatAm                        1794.93     -1.35    -0.57
 Brazil Bovespa                   42704.85     -1.23    -1.49
 Mexico IPC                       43464.88     -0.19     1.13
 Chile IPSA                        3734.25     -0.54     1.47
 Chile IGPA                       18320.01     -0.48     0.93
 Argentina MerVal                 12494.29     -0.24     7.02
 Colombia IGBC                     8998.90     -0.63     5.28
                                                             
 Currencies                                  daily %    YTD %
                                              change   change
                                                      
                                    Latest            
 Brazil real                        3.9779     -0.71    -0.78
 Mexico peso                       18.1945     -0.66    -5.30
                                                      
 Chile peso                         696.75     -0.66     1.86
 Colombia peso                     3327.94     -0.66    -4.77
 Peru sol                           3.5281     -0.26    -3.23
 Argentina peso (interbank)        15.4900     -1.29   -16.19
                                                      
 Argentina peso (parallel)           15.45     -0.19    -7.64
                                                      
 
 (Reporting by Bruno Federowski; Editing by Nick Zieminski)