EMERGING MARKETS-Latam currencies, stocks down as Fed rate hike looms

jueves 19 de mayo de 2016 15:56 GYT
 

(Adds Colombia, updates prices)
    By Bruno Federowski
    SAO PAULO, May 19 (Reuters) - Latin American stocks and
currencies fell on Thursday after policy meeting notes from the
Federal Reserve revived bets for an interest rate increase as
soon as next month in the world's biggest economy.
    Mexico's peso touched a three-month low against the dollar
while the peso in Colombia fell to its lowest in a month
after minutes of the U.S. central bank's April meeting showed
officials believed a June hike would be warranted if data
suggests faster growth, rising inflation and solid employment.
 
    Higher U.S. interest rates would in turn raise borrowing
costs in emerging markets.
    Weakness in commodities including iron ore .IO62-CNI=SI
also weighed on demand for assets from exporters of basic
products.
    Shares of Brazilian oil company Petróleo Brasileiro SA
 tumbled as much as 4.3 percent, weighing on the
country's benchmark Bovespa stock index, which fell to a
one-month low.
    The Mexican peso  briefly dropped to 18.596
per dollar, its lowest since Feb. 17, triggering speculation the
central bank could act to buffer the slump through spot dollar
sales or by increasing interest rates. 
    The Bank of Mexico resorted to both measures at an impromptu
meeting in February as the peso tumbled to record lows near
19.50 to the dollar. 
    A majority of the central bank's policymakers believed the
peso could depreciate even further, with one saying there is
space to tighten policy without significantly affecting economic
activity, the minutes of the bank's last policy meeting showed.
 
    
    Key Latin American stock indexes and currencies at 1945 GMT:
 Stock indexes                             daily %     YTD %
                               Latest       change    change
 MSCI Emerging Markets            783.35     -1.37      0.01
                                                    
 MSCI LatAm                      2075.12      -1.7     15.37
                                                    
 Brazil Bovespa                 50022.37     -1.07     15.39
                                                    
 Mexico IPC                     45050.60      -1.1      4.82
                                                    
 Chile IPSA                      3930.15     -0.91      6.79
                                                    
 Chile IGPA                     19351.81     -0.81      6.61
                                                    
 Argentina MerVal               12588.69     -1.88      7.82
                                                    
 Colombia IGBC                   9793.32     -0.74     14.58
                                                    
 Venezuela IBC                  15363.68      2.33      5.32
                                                    
                                                            
 Currencies                                daily %     YTD %
                                            change    change
                                  Latest            
 Brazil real                      3.5662     -0.12      9.65
                                                    
 Mexico peso                     18.4380      0.04     -7.01
                                                    
 Chile peso                        693.7      0.26      2.25
                                                    
 Colombia peso                   3055.35     -1.08      3.59
                                                    
 Peru sol                         3.3419     -0.48      2.11
                                                    
 Argentina peso (interbank)      14.0950      0.28     -8.57
                                                    
 Argentina peso (parallel)         14.64      0.48     -2.59
                                                    
 
 (Reporting by Bruno Federowski Additional reporting by Anna
Yukhananov in Mexico City; Editing by David Gregorio and James
Dalgleish)