EMERGING MARKETS-Brazil's real falls as impeachment vote triggers profit-taking

lunes 18 de abril de 2016 11:22 GYT

By Bruno Federowski
    SAO PAULO, April 18 (Reuters) - Brazil's currency fell on
Monday as investors took profits following a much-expected lower
house vote to oust President Dilma Rousseff.
    Heavy central bank purchases of U.S. dollars from local
investors also weighed on the currency, which sharply
underperformed regional peers. The country's benchmark Bovespa
stock index seesawed.
    The lower house approved the continuation of impeachment
proceedings against Rousseff by a landslide. The process now
goes to the Senate, where a ballot is expected early next month.
    A simple majority vote in the Senate would suspend
Rousseff's presidency for as long as six months, pending a trial
at the Senate. Bets on Rousseff's impeachment had recently
driven Brazil's stocks and currency to their highest levels in
over six months.
    "Now that the lower house vote has passed, many in the
market will book profits as they wait for new developments,"
said Francisco Carvalho, head currency trader with broker-dealer
BGC Liquidez in São Paulo.
    Many traders said a new government could help revive trust
in the recession-ridden economy. The real jumped to as
high as 3.47 reais to the U.S. dollar early in the morning, but
reversed gains after the central bank stepped in.
    The central bank bought $3.4 billion worth of future dollar
contracts through an instrument known as reverse currency swaps,
which are designed to stem a rally in the currency.
    Shares of mining giant Vale SA gained 2.7
percent, leading increases in the Bovespa index. Limiting gains,
state-controlled oil company Petróleo Brasileiro SA 
fell 3.5 percent in late Monday morning trading.
    A slump in oil prices reinforced a bearish sentiment in
Brazilian stocks, traders said. Major oil producers failed to
reach an accord to freeze global crude output at a meeting in
Doha this weekend. 
    Key Latin American stock indexes and currencies at 1440 GMT:
 Stock indexes                                daily %   YTD %
                                               change  change
 MSCI Emerging Markets                844.72    -0.23    6.62
 MSCI LatAm                          2214.45    -0.35   21.45
 Brazil Bovespa                     53187.10    -0.08   22.69
 Mexico IPC                         45514.65    -0.05    5.90
 Chile IPSA                          3955.08    -0.18    7.47
 Chile IGPA                         19408.29    -0.14    6.92
 Argentina MerVal                   13128.89    -0.82   12.45
 Colombia IGBC                       9975.76    -0.32   16.71
 Venezuela IBC                      16230.53     0.61   11.26
 Currencies                                   daily %   YTD %
                                               change  change
 Brazil real                          3.5601    -1.06   10.87
 Mexico peso                         17.4565     0.56   -1.30
 Chile peso                            665.2     0.24    6.69
 Colombia peso                          3005    -0.27    5.47
 Peru sol                             3.2821    -0.25    4.02
 Argentina peso (interbank)          14.1000     0.00   -7.93
 Argentina peso (parallel)             14.89     0.60   -4.16
 (Reporting by Bruno Federowski; Additional reporting by Paula
Arend Laier; Editing by Andrea Ricci)