EMERGING MARKETS-Latam currencies fall ahead of Doha meeting; Brazil stocks rise

viernes 15 de abril de 2016 12:10 GYT
 

By Bruno Federowski
    SAO PAULO, April 15 (Reuters) - Latin American currencies
weakened across the board on Friday as skepticism over a
potential agreement to freeze oil output weighed on commodity
prices, while Brazilian stocks rose ahead of a key vote on
President Dilma Rousseff's ouster.
    Traders saw Iran's refusal to participate in a weekend
meeting of major exporters in Doha, Qatar, as a sign that any
accord would have little effect in reducing global oversupply.
    Oil prices fell , dragging down currencies
from exporters such as Mexico  and Colombia
.
    The Chilean peso also fell, tracing weakness in
copper, the country's main export. Strong Chinese
economic data fostered expectations that the world's top
consumer of commodities could reduce its stimulus policies.
 
    Local politics took the main stage in Brazil as expectations
grew that a two-thirds majority will vote for Rousseff's
impeachment in the lower house of Congress on Sunday. 
    That would send the vote to the Senate, the last step before
she is put on trial and power is officially handed to Vice
President Michel Temer for up to six months as her fate is
decided.
    Temer has been hinting at a market-friendly agenda and many
traders believe he would have an easier time passing tough
measures in Congress than Rousseff. 
    This was not enough to lift the Brazilian real,
however, after the central bank once again intervened heavily in
the FX market.
    "Today's focus is fully on Congress. The central bank might
be able to moderate the real's strength, but politics will
dictate the currency's movements over the following weeks," said
Marcos Trabbold, a trader with B&T brokerage in São Paulo.
    
    Key Latin American stock indexes and currencies at 1600 GMT:
 Stock indexes                               daily %    YTD %
                                              change   change
                                  Latest              
 MSCI Emerging Markets               846.92     0.17     6.46
 MSCI LatAm                         2221.76     0.11    21.28
 Brazil Bovespa                    53279.99     1.66    22.91
 Mexico IPC                        45532.47     0.28     5.94
 Chile IPSA                         3952.86     0.06     7.41
 Chile IGPA                        19395.33     0.14     6.85
 Argentina MerVal                  13304.11     0.71    13.95
 Colombia IGBC                      9998.64    -0.85    16.98
 Venezuela IBC                     16140.03     3.07    10.64
                                                             
 Currencies                                  daily %    YTD %
                                              change   change
                                     Latest           
 Brazil real                         3.5349    -1.71    11.66
 Mexico peso                        17.5600    -0.66    -1.88
                                                      
 Chile peso                           666.5    -0.41     6.48
 Colombia peso                      2996.63    -0.08     5.76
 Peru sol                            3.2759    -0.09     4.22
 Argentina peso (interbank)         14.2800     0.39    -9.09
                                                      
 Argentina peso (parallel)            14.87     0.74    -4.03
                                                      
 

 (Reporting by Bruno Federowski; Editing by Dan Grebler)