EMERGING MARKETS-Latam stocks, currencies ease as Fed official urges rate hike

viernes 23 de septiembre de 2016 12:50 GYT

By Bruno Federowski
    SAO PAULO, Sept 23 (Reuters) - Most Latin American stocks
and currencies fell on Friday as investors booked profits from a
two-day rally after Boston Federal Reserve President Eric
Rosengren said he believed rates should be raised gradually now.
    Rosengren was one of three members of the Federal Open
Market Committee to dissent at this week's monetary policy
meeting that left U.S. interest rates unchanged at a range of
0.25 percent to 0.50 percent. 
    "It runs against the dovish talk" heard recently from the
Fed, 4Cast economist Pedro Tuesta said.
    Fed policymakers reduced their forecasts of annual rate
increases to two from three for 2017 to 2018 in the policy
statement released after Wednesday's meeting, boosting
high-yielding emerging market assets. 
    The Mexican peso weakened 0.7 percent on Friday
after strengthening during the previous two sessions, while the
Colombian peso dropped about 1.2 percent.
    The two currencies also suffered the impact of a drop in
crude prices, a key export and source of tax revenue for both
Mexico and Colombia.
    Brazil's benchmark Bovespa stock index fell 0.29
percent, dragged down by blue-chip shares such as
state-controlled oil company Petróleo Brasileiro SA 
 and lender Itaú Unibanco Holding SA.
    But shares of pulp producers Fibria Celulose SA 
and Suzano Papel e Celulose SA rose after Itaú BBA
raised its recommendation for the shares. 
    Key Latin American stock indexes and currencies at 1630 GMT:
 Stock indexes                     Latest       Daily     YTD
                                                  pct     pct
                                               change  change
 MSCI Emerging Markets                917.28     -0.4   15.96
 MSCI LatAm                         2,400.42    -1.17   32.73
 Brazil Bovespa                    58,825.82    -0.29   35.70
 Mexico IPC                        47,629.03    -0.72   10.82
 Chile IPSA                         4,087.74     -0.3   11.07
 Chile IGPA                        20,343.18    -0.24   12.07
 Argentina MerVal                  16,353.63    -1.73   40.07
 Colombia IGBC                      9,971.68    -0.23   16.66
 Venezuela IBC                     12,504.12    -0.01  -14.29
 Currencies                           Latest    Daily     YTD
                                                  pct     pct
                                               change  change
 Brazil real                          3.2288    -0.12   22.24
 Mexico peso                         19.7425    -0.65  -12.73
 Chile peso                              661    -0.27    7.37
 Colombia peso                       2,917.8    -1.09    8.62
 Peru sol                              3.353    -0.30    1.82
 Argentina peso (interbank)          15.1500     0.13  -14.31
 Argentina peso (parallel)             15.64     0.38   -8.76
 (Reporting by Bruno Federowski, editing by G Crosse)