EMERGING MARKETS-Brazil currency, stocks slip as doubts follow protests

lunes 14 de marzo de 2016 10:59 GYT
 

By Flavia Bohone
    SAO PAULO, March 14 (Reuters) - Brazil's currency and stock
market fell on Monday following weekend demonstrations calling
for the ouster of President Dilma Rousseff, with traders taking
profits as the focus turned to questions about the strength of
the political opposition.
    The Brazilian real dropped 1.0 percent and the
benchmark Bovespa stock index lost 0.3 percent after
surging nearly 10 percent and 20 percent respectively in the
prior two weeks.
    The outlook for Rousseff has rapidly eroded. A corruption
investigation is nearing her inner circle and her largest
coalition partner has distanced itself from the government, 
boosting expectations of a more market-friendly administration
ahead.
    The tough streak for Rousseff continued on Sunday with the
largest in a series of anti-government rallies sweeping the
streets of Brazil's biggest cities, confirming a growing
appetite for change but raising doubts about what would follow.
 
    "Brazil continues to ride a wave of impeachment optimism,
but we warn that this bullishness is likely overdone," BBH
analysts said in a note to clients.
    Rousseff's opponents in Congress have tried to seize on the
widespread discontent to mount a reform agenda, but crowds on
Sunday appeared resistant to certain opposition leaders taking
the spotlight.
    "We saw that people don't have a name to replace the
Workers' Party government. The opposition was booed and the
question remains, 'Who will replace this administration?'" said
Joao Paulo de Gracia Correa, head of the regional currency desk
for the SLW brokerage in Curitiba.
    Shares of state-run oil company Petroleo Brasileiro SA
 were among the biggest losers on the Bovespa,
dropping 4 percent after a nearly 45 percent rally in the prior
two weeks.
           
    Key Latin American stock indexes and currencies at 1430 GMT:
    
 Stock indexes                             daily %       YTD %
                                 Latest     change      change
 MSCI Emerging Markets            804.17      0.41        0.85
                                                    
 MSCI LatAm                      2071.39     -0.44       13.71
                                                    
 Brazil Bovespa                 49513.14     -0.25       14.22
                                                    
 Mexico IPC                     44748.26      0.03        4.12
                                                    
 Chile IPSA                      3844.76      0.13        4.47
                                                    
 Chile IGPA                     18839.07      0.12        3.79
                                                    
 Argentina MerVal               12864.07     -1.43       10.18
                                                    
 Colombia IGBC                   9589.45     -0.68       12.19
                                                    
 Venezuela IBC                  15767.07     -0.78        8.08
                                                    
                                                              
 Currencies                                daily %       YTD %
                                            change      change
                                  Latest            
 Brazil real                      3.6247     -0.97        8.89
                                                    
 Mexico peso                     17.8075     -0.60       -3.24
                                                    
 Chile peso                          685     -0.26        3.61
                                                    
 Colombia peso                   3179.65     -1.03       -0.33
 Peru sol                          3.368     -0.29        1.37
                                                    
 Argentina peso (interbank)      14.8000      0.47      -12.28
                                                    
 Argentina peso (parallel)         15.55      1.03       -8.23
                                                    
 
    

 (Reporting by Flavia Bohone; Additional reporting by Paula
Laier; Writing by Brad Haynes; Editing by Dan Grebler)