EMERGING MARKETS-Brazil real, stocks rally on news Rousseff implicated in probe

jueves 3 de marzo de 2016 17:59 GYT
 

(Updates prices)
    By Bruno Federowski
    SAO PAULO, March 3 (Reuters) - Brazil's stocks jumped by the
most in six years and the real currency also rallied on Thursday
on news that bolstered the case to impeach President Dilma
Rousseff and bets the central bank could take longer to cut
interest rates.
    The Brazilian stock market rose 5.4 percent, its
largest one-day rally since October 2009, also helped by
favorable corporate news. The real rose 2.4 percent, its
biggest jump in nearly five months, outperforming regional
peers.
    According to local media, Brazilian ruling party senator
Delcidio do Amaral agreed to a plea bargain implicating Rousseff
and her predecessor Luiz Inacio Lula da Silva in a graft
scandal. Amaral declined to confirm the report. 
    Analysts said the scandal bolsters the case for Rousseff's
impeachment, encouraging investors who blame her Worker Party's
interventionist policies for driving Brazil into what could be
its deepest recession on record. 
    "The market is betting Rousseff will not finish her
mandate," said Pedro Tuesta, an economist with 4Cast in
Washington D.C.
    The real, which closed at a three-month high of 3.7977 per
dollar, was supported by the central bank's split decision to
keep benchmark rates at 14.25 percent after markets closed on
Wednesday. 
    The split vote, with two of the eight members voting for a
50-basis-points increase, led traders to trim bets on a rate cut
later this year or early next year. Inflation has been running
at double-digits, way above the central bank's target range.
    Stock markets across the region also rose, with Mexico's IPC
stock index hitting its highest in more than three
months, following a return of risk appetite and a recovery in
commodity prices.
    
    Key Latin American stock indexes and currencies at 2106 GMT:
 Stock indexes                             daily %     YTD %
                               Latest       change    change
 MSCI Emerging Markets            781.34      1.59     -3.15
                                                    
 MSCI LatAm                      1970.49      3.72      3.82
                                                    
 Brazil Bovespa                 47323.80      5.41      9.17
                                                    
 Mexico IPC                     44742.22      0.28      4.11
                                                    
 Chile IPSA                      3817.39      1.34      3.73
                                                    
 Chile IGPA                     18707.96      1.38      3.07
                                                    
 Argentina MerVal               13327.87       0.8     14.16
                                                    
 Colombia IGBC                   9548.46      0.94     11.71
                                                    
 Venezuela IBC                  16267.34      0.11     11.51
                                                    
                                                            
 Currencies                                daily %     YTD %
                                            change    change
                                  Latest            
 Brazil real                      3.8012      2.21      3.69
                                                    
 Mexico peso                     17.9245     -0.53     -4.03
                                                    
 Chile peso                          687     -0.12      3.20
                                                    
 Colombia peso                   3190.26      0.46     -0.66
                                                    
 Peru sol                         3.4621      0.86     -1.41
                                                    
 Argentina peso (interbank)      15.1550      3.22    -16.73
                                                    
 Argentina peso (parallel)         15.66      1.51     -9.74
                                                    
 
 (Reporting by Alonso Soto, additional reporting by Anna
Yukhananov; Editing by Dan Grebler)