EMERGING MARKETS-Latam currencies fall sharply on global risk aversion

martes 5 de abril de 2016 16:27 GYT
 

By Bruno Federowski
    SAO PAULO, April 5 (Reuters) - Latin American currencies
weakened sharply on Tuesday as concerns over global growth,
lower commodity prices and prospects of higher U.S. rates drove
investors to seek safety in the U.S. dollar.
    The Mexican peso was down 1.3 percent to 17.7175 pesos per
dollar and the Brazilian real slumped 1.837 percent to 3.6804
reais per dollar.
    International Monetary Fund Managing Director Christine
Lagarde warned on Tuesday of global economic risks, calling for
stronger government action. 
    Coupled with a round of weak European economic figures, the
comments boosted financial market angst toward the global growth
outlook, which took its toll on commodities prices. 
  
    An unexpected shortfall in U.S. demand for oil also weighed
on crude prices as the chance of a coordinated output cut seemed
to fade away.
    Traders remained skittish following mixed messages by
Federal Reserve policymakers as to when the U.S. central bank
will increase rates. Strong services data supported expectations
that a rate hike could come sooner rather than later, reducing
the allure of higher-yielding - but higher-risk - emerging
market assets. 
    "There is a distinct whiff of risk aversion lingering over
the markets," analysts with Scotiabank wrote in a research note.
    The Brazilian real fell more than its peers as
traders pared bets on President Dilma Rousseff's ouster as her
efforts to stave off impeachment grew in strength. Brazil's
attorney general urged a congressional committee on Monday to
discard impeachment charges against the leftist president.
 
    A Brazilian Federal Supreme Court justice on Tuesday ordered
Congress to start impeachment proceedings against Vice President
Michel Temer. 
    Because Temer is next in line for the presidency if Rousseff
were impeached, the possibility of his ouster complicates the
calculation that lawmakers must make if they vote to oust
Rousseff, and deepens uncertainty over the country's leadership.
    Key Latin American stock indexes and currencies at 2000 GMT:
    
 Stock indexes                             daily %     YTD %
                               Latest       change    change
 MSCI Emerging Markets            811.28     -1.87      4.11
                                                    
 MSCI LatAm                      2069.19      -1.9     15.27
                                                    
 Brazil Bovespa                 49239.24      0.94     13.59
                                                    
 Mexico IPC                     45186.01     -1.08      5.14
                                                    
 Chile IPSA                      3920.31     -0.75      6.52
                                                    
 Chile IGPA                     19217.35     -0.69      5.87
                                                    
 Argentina MerVal               12510.78     -2.13      7.16
                                                    
 Colombia IGBC                   9707.68     -1.88     13.58
                                                    
 Venezuela IBC                  14896.15       1.9      2.11
                                                    
                                                            
 Currencies                                daily %     YTD %
                                            change    change
                                  Latest            
 Brazil real                      3.6804    -1.837     7.244
                                                    
 Mexico peso                     17.7175     -1.30     -2.75
                                                    
 Chile peso                        675.5     -0.74      5.06
                                                    
 Colombia peso                    3084.1     -0.68      2.76
 Peru sol                         3.3631     -0.42      1.51
                                                    
 Argentina peso (interbank)      14.6800      0.34    -11.56
                                                    
 Argentina peso (parallel)         15.05      0.93     -5.18
                                                    
 
 (Reporting by Bruno Federowski; Additional reporting by Paula
Arend Laier; Editing by David Gregorio)