EMERGING MARKETS-Latam stocks, currencies mostly up ahead of Fed meeting
SAO PAULO, Sept 19 (Reuters) - Latin American stocks and currencies mostly rose on Monday, boosted by rising oil prices and bets the Federal Reserve will strike a cautious tone in its policy statement this week. Oil prices rose 2 percent on Monday after Venezuela hinted that OPEC and major producers could agree to a market support deal, lifting the Colombian peso. But most traders kept their focus on global monetary policy ahead of policy meetings by the Fed and the Bank of Japan on Wednesday. A range of mixed economic figures and conflicting remarks by key Fed policymakers have kept investors guessing over the timing of the next U.S. rate hike. J.P.Morgan revised its forecasts this week to continue to show an initial increase in December 2016 followed by two hikes in 2017. Previously, the bank forecast three rate hikes next year. "We continue to anticipate that inflation will slowly move higher, though the decline in some measures of inflation expectations could trim some of the upside risk to that forecast," economist Mike Feroli wrote in a client note. In Japan, policymakers could well go in the opposite direction by easing policy, though conflicting reports on what it might do have stoked uncertainty. Brazil's benchmark Bovespa stock index rose 1.2 percent, with miners and steelmakers among the biggest gainers despite lower China-traded iron ore prices .IO62-CNI=SI. Shares of Cia Siderúrgica Nacional SA jumped 8.3 percent, leading the gains in the index, after O Globo newspaper reported that it is negotiating the sale of a minority stake in a iron ore unit to China's CBSteel. Stocks in Petróleo Brasileiro SA also rose ahead of the announcement of the state-controlled oil company's strategic plan. Petrobras, as the company is known, will likely cut planned investment by about a sixth and its 2020 output goal by 14 percent under the five-year strategic plan that could be released as early as after markets close, according to analysts. Key Latin American stock indexes and currencies at 1610 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 898.46 1.47 11.5 MSCI LatAm 2332.54 1.4 25.72 Brazil Bovespa 57695.76 1.08 33.09 Mexico IPC 45832.36 -0.2 6.64 Chile IPSA 4048.29 -0.46 10.00 Chile IGPA 20154.38 -0.39 11.03 Argentina MerVal 16146.37 2.01 38.30 Colombia IGBC 9981.52 0.05 16.78 Venezuela IBC 11937.82 0.11 -18.17 Currencies daily % YTD % change change Latest Brazil real 3.2582 0.28 21.14 Mexico peso 19.6390 -0.10 -12.27 Colombia peso 2917.26 1.26 8.64 Peru sol 3.388 0.15 0.77 Argentina peso (interbank) 15.1700 -0.23 -14.42 Argentina peso (parallel) 15.5 0.00 -7.94 (Reporting by Bruno Federowski; Editing by Chris Reese)
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