EMERGING MARKETS-Brazil stocks jump on impeachment bets; real eases as cenbank acts

miércoles 13 de abril de 2016 12:09 GYT

By Bruno Federowski
    SAO PAULO, April 13 (Reuters) - Brazilian stocks jumped 3.2
percent and hit their highest level in ten months on Wednesday
amid expectations of President Dilma Rousseff's ouster, but the
country's currency succumbed to the heightened intervention of
the central bank.
    Brazil's lower house will vote on Sunday on whether to allow
impeachment proceedings against the leftist President to advance
to a Senate vote. 
    Lawmakers' support for the survival of her government seemed
to dwindle after the Progressive Party (PP) officially left the
administration on Tuesday. The party's leader in the lower house
said a majority of its 49 deputies supported impeachment.
    Brazil's stocks and currency have rallied for weeks as many
traders bet that impeachment could rekindle trust in the
embattled economy and ease the approval of austerity measures in
    Shares of state-controlled firms such as oil company
Petroleo Brasileiro SA and lender Banco do Brasil SA
 rose, driving the benchmark Bovespa stock index
 to its highest since June 2015.
    But the Brazilian real fell sharply after the central
bank stepped up its intervention to weaken the currency.
    The bank bought $3.15 billion in the markets through reverse
currency swaps on Wednesday following an unprecedented $8
billion purchase the day before.
    BNP Paribas strategists praised the intervention, saying the
real had appreciated beyond what was warranted by macroeconomic
    "In past interventions, the central bank has been too
predictable ... all else being equal, 3.50 per U.S. dollar now
seems to be the implicit floor for the real," strategists led by
Gabriel Gersztein wrote in a client note.
    The move also helped reduce the central bank's exposure to
foreign exchange movements stemming from the $100 billion in
traditional currency swaps in its books.
    Elsewhere in the region, Mexico's IPC stock index was
up nearly 0.9 percent while Chile's IPSA rose 0.49
    Key Latin American stock indexes and currencies at 1540 GMT:
 Stock indexes                      Latest     Daily    YTD
                                                pct     pct
                                              change   change
 MSCI Emerging Markets                844.24     1.61    4.63
 MSCI LatAm                         2,233.40     1.86   19.83
 Brazil Bovespa                    53,663.93      3.2   23.79
 Mexico IPC                        45,479.22     0.86    5.82
 Chile IPSA                         3,973.12     0.49    7.96
 Chile IGPA                        19,461.45     0.45    7.22
 Argentina MerVal                  12,958.61     2.08   10.99
 Colombia IGBC                     10,154.50     0.77   18.80
 Venezuela IBC                     15,623.90     2.37    7.10
 Currencies                         Latest     Daily    YTD
                                                pct     pct
                                              change   change
 Brazil real                          3.5445    -1.49   11.36
 Mexico peso                         17.4965    -0.09   -1.52
 Chile peso                            668.7     0.67    6.13
 Colombia peso                       3,005.4     0.35    5.45
 Peru sol                             3.2611     0.03    4.69
 Argentina peso (interbank)          14.3700     0.70   -9.66
 Argentina peso (parallel)             14.87     0.94   -4.03

 (Reporting by Bruno Federowski; additional reporting by Paula
Arend Laier, editing by G Crosse)