EMERGING MARKETS-Mexico peso rises after U.S. presidential debate

martes 27 de septiembre de 2016 17:28 GYT
 

(Adds details on peso, closing prices)
    By Bruno Federowski
    SAO PAULO, Sept 27 (Reuters) - The Mexican peso strengthened
on Tuesday as traders cheered Democrat candidate Hillary
Clinton's performance against Republican Donald Trump in the
first U.S. presidential debate.
    Many traders fear a Trump victory could threaten Mexican
exports to the United States, its biggest single market.
    The peso  firmed 2.5 percent to its strongest
level in a week, rebounding from its weakest-ever drop last
week, when polls showed growing support for a Trump presidency.
It was the peso's biggest daily rise in more than seven months.
    Clinton put Trump on the defensive on Monday night by
accusing him of being racist, sexist and a tax dodger.
 
    But analysts say Mexican markets should remain volatile
until the Nov. 8 elections as the outcome remains far from
certain. That has boosted a debate over whether the Mexican
central bank could increase rates to support the peso over the
coming months.
    Nomura Securities analysts believe it would be too early for
a hike at next week's policy meeting, while the bank's gathering
in Nov. 17 could prove to be too late.
    They recommend investors keep up bets in the peso's
weakness, possibly protecting themselves against volatility with
FX options.
    "We think the prevailing bias in the market (USDMXN upwards)
will persist until we get a definitive result on election night
or polls suggest an outcome with a high degree of confidence, an
event that we see as unlikely for the time being," they wrote in
a report.
    Rates paid on Mexican interest futures were down
across the board. Brazilian rate futures <0#2DIJ:> also dropped
after the country's central bank reduced its inflation
forecasts, fostering bets on a rate cut as soon as October.
 
    Latin American stock markets, however, were mixed as a drop
in crude oil prices weighed on shares of oil companies such as
Brazil's Petróleo Brasileiro SA . 

    Key Latin American stock indexes and currencies at 2115 GMT:
 Stock indexes                     Latest        Daily     YTD
                                                   pct     pct
                                                change  change
 MSCI Emerging Markets                911.13      0.62   14.73
 MSCI LatAm                         2,383.48      0.72   30.26
 Brazil Bovespa                    58,382.49      0.57   34.68
 Mexico IPC                        47,731.84      1.01   11.06
 Chile IPSA                         4,052.52      -0.9   10.12
 Chile IGPA                        20,202.49     -0.73   11.30
 Argentina MerVal                  16,348.50     -0.04   40.03
 Colombia IGBC                      9,773.83      -1.1   14.35
 Venezuela IBC                     12,982.36      2.53  -11.01
                                                              
 Currencies                           Latest     Daily     YTD
                                                   pct     pct
                                                change  change
 Brazil real                          3.2310      0.51   22.16
 Mexico peso                          19.385      2.54  -11.12
 Chile peso                            662.5     -0.14    7.12
 Colombia peso                         2,885      1.25    9.85
 Peru sol                              3.365      0.12    1.46
 Argentina peso (interbank)          15.2775     -0.28  -15.02
                                                        
 Argentina peso (parallel)             15.73      0.13   -9.28
                                                        
 

 (Reporting by Bruno Federowski and Miguel Angel Gutierrez;
Editing by Diane Craft and Dan Grebler)