EMERGING MARKETS-Oil rise lifts Latam currencies; eyes on Peru, Brazil
By Bruno Federowski SAO PAULO, April 8 (Reuters) - A jump in oil prices put Latin American currencies on track for a positive end to a week marked by hefty losses as investors turned their focus to political developments in Peru and Brazil over the coming days. Hopes that major oil producers could agree to freeze output at a meeting in Doha on April 17 lifted crude prices by more than 6 percent, triggering a rebound in demand for risky assets. Latin American markets had been slammed over the last few days by growing worries over global economic weakness, but concerns eased after Federal Reserve Chair Janet Yellen expressed confidence in the U.S. economic outlook. The Peruvian sol strengthened on Friday after weakening for five consecutive days, but still eyed its biggest weekly loss since late January. Peru holds general elections on Sunday, with the most plausible outcome of the presidential race seeming to be a face-off between front-runner Keiko Fujimori and either leftist Veronika Mendoza or investor-favorite Pedro Pablo Kuczynski in a second-round vote. Uncertainty over the next government's economic policies limited gains in Peru's currency, offering a sharp contrast with the cheerier mood prevailing in Brazilian markets. A parliamentary commission assessing the legality of impeachment proceedings against leftist President Dilma Rousseff will take a stand on Monday, paving the way for a vote in the full chamber of deputies over the following days. Polls showing growing support for Rousseff's ouster among lawmakers helped lift the country's stocks and currency , as many traders believe the move could bring foreign capital back to Brazil's recession-weary economy. Analysts with Eurasia Group estimated a 60 percent chance that Rousseff would be impeached this month. Shares of Rumo Logistica Operadora Multimodal SA jumped 15 percent after the Brazilian logistics operator successfully completed a capital increase of 2.6 billion reais ($717 million). The transaction allayed some concerns about near-term debt sustainability, analysts said. Key Latin American stock indexes and currencies at 1610 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 816.94 0.95 1.91 MSCI LatAm 2099.23 3.2 11.16 Brazil Bovespa 50261.76 3.6 15.94 Mexico IPC 45200.19 0.33 5.17 Chile IPSA 3928.76 0.99 6.75 Chile IGPA 19255.65 0.85 6.08 Argentina MerVal 12089.81 1.9 3.55 Colombia IGBC 9806.20 0.86 14.73 Venezuela IBC 15179.96 -1.7 4.06 Currencies daily % YTD % change change Latest Brazil real 3.6329 1.66 8.65 Mexico peso 17.7635 0.65 -3.00 Chile peso 682.6 0.06 3.97 Colombia peso 3082.95 0.73 2.80 Peru sol 3.3821 0.35 0.94 Argentina peso (interbank) 14.4250 0.31 -10.00 Argentina peso (parallel) 14.84 0.74 -3.84 (Reporting by Bruno Federowski; Additional reporting by Paula Arend Laier; Editing by Paul Simao)
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