EMERGING MARKETS-Colombia, Mexico pesos eye weekly gain as risk appetite returns

viernes 26 de febrero de 2016 12:51 GYT
 

By Bruno Federowski
    SAO PAULO, Feb 26 (Reuters) - The Mexican and Colombian
currencies looked set to post their second straight weekly gain
on Friday as rebounding oil prices, talk of stimulus measures in
China and stronger U.S. growth extended the currencies' bounce
from recent all-time lows.
    The rally was also triggered by stronger central bank
intervention policies announced last week in order to curb
inflation expectations.
    "The measures were timely and forceful, as well as necessary
to add two-way risk back into the currency market," wrote Morgan
Stanley analysts in a client note about Mexico's central bank
intervention. 
    The bank only used up $2 billion in dollar sales and seemed
to be successful in supporting the peso, they added.
    Fitch Ratings affirmed Mexico's BBB+ ratings on Friday, and
affirmed a stable outlook, citing the country's diversified
economic base and track record of disciplined fiscal policies.
 
    Meanwhile, Colombia did not even need to intervene in the
foreign exchange market. Although the central bank reduced the
threshold triggering automatic dollar call option sales, the
bank has not held any auctions so far.
    The currencies were supported on Friday by higher crude
prices and speculation that China could be preparing a new
stimulus package. 
    A stronger-than-expected revision of U.S. fourth-quarter
growth also fostered appetite for riskier assets, although some
traders said the data could allow the Federal Reserve to hike
interest rates sooner. 
    The Brazilian real underperformed, suffering from
portfolio rebalancing trades usually conducted at the end of the
month. Traders often try to influence a foreign exchange rate
calculated by the central bank in the last session of the month,
which is used to settle futures contracts, boosting volatility.
    Brazil stocks fell, pressured by a slump in shares
of BRF SA. The food processor announced several
management changes after posting higher-than-expected profits in
the fourth quarter. 
        
    Key Latin American stock indexes and currencies at 1620 GMT:
 Stock indexes                     Latest     Daily    YTD pct
                                               pct     change
                                              change   
 MSCI Emerging Markets               739.69      0.59    -7.4 
 MSCI LatAm                        1,778.57     -0.47    -2.34
 Brazil Bovespa                   41,762.71     -0.3     -3.66
 Mexico IPC                       43,361.67     -0.17     0.89
 Chile IPSA                        3,722.95      0.8      1.16
 Chile IGPA                       18,279.17      0.69     0.70
 Argentina MerVal                 13,003.55      0.52    11.38
 Colombia IGBC                     9,217.65      1.07     7.84
 Venezuela IBC                    16,815.21     -0.03    15.27
                                                              
 Currencies                        Latest     Daily    YTD pct
                                               pct     change
                                              change   
 Brazil real                         3.9945     -1.15    -1.19
 Mexico peso                        18.1400     -0.06    -5.02
 Chile peso                           691.2      0.12     2.68
 Colombia peso                     3,303.35      0.17    -4.06
 Peru sol                            3.5231      0.11    -3.10
 Argentina peso (interbank)         15.4600     -0.39   -16.03
                                                       
 Argentina peso (parallel)             15.7     -0.25    -9.11
                                                       
 
 (Reporting by Bruno Federowski; additional reporting by Paula
Arend Laier, editing by G Crosse)