EMERGING MARKETS-Latam currencies up on Deutsche Bank report

viernes 30 de septiembre de 2016 12:57 GYT

By Bruno Federowski
    SAO PAULO, Sept 30 (Reuters) - Latin American currencies
strengthened on Friday on reports Deutsche Bank is
close to reaching an accord with U.S. officials to settle
charges related to its sale of toxic mortgage bonds before the
financial crisis.
    Concerns over the financial health of Germany's largest
lender sent investors scurrying for safer assets earlier this
    Agence France-Presse reported Deutsche Bank was nearing a
settlement to pay $5.4 billion. About two weeks ago, the bank 
said it would fight a $14 billion demand from the U.S.
Department of Justice. 
    Brazil's real currency strengthened 0.4 percent,
while the country's benchmark stock index rose nearly 1
    The Mexican peso  firmed more than its peers
after the country's central bank increased rates by 50 basis
points to stem the currency's decline. 
    The hike "seems difficult to understand for those that look
at fundamentals but seems a lot clearer for those that think of
monetary policy as a damage control tool," J.P.Morgan strategist
Carlos Carranza wrote in a client note.
    The peso was pushed to historic lows over the past weeks on
concerns that Republican candidate Donald Trump could become the
next U.S. president.
    He reiterated his "underweight" recommendation for
peso-denominated Mexican bonds, citing outflows, the peso's
underperformance, a weakening current account and risks related
to the U.S. election.
    Key Latin American stock indexes and currencies at 1635 GMT:
 Stock indexes                               daily %   YTD %
                                              change  change
 MSCI Emerging Markets               905.38    -0.88   15.02
 MSCI LatAm                         2402.65     0.07   31.21
 Brazil Bovespa                    58751.60     0.69   35.53
 Mexico IPC                        47631.93    -0.08   10.83
 Chile IPSA                         4025.38    -0.67    9.38
 Chile IGPA                        20095.33    -0.55   10.71
 Argentina MerVal                  16751.57     0.04   43.48
 Colombia IGBC                      9940.64     0.44   16.30
 Venezuela IBC                     12967.97     1.86  -11.11
 Currencies                                  daily %   YTD %
                                              change  change
 Brazil real                         3.2417     0.39   21.76
 Mexico peso                        19.3200     1.02  -10.82
 Chile peso                           657.1     0.09    8.00
 Colombia peso                      2884.65     0.19    9.87
 Peru sol                             3.392     0.03    0.65
 Argentina peso (interbank)         15.2450     0.85  -14.84
 Argentina peso (parallel)            15.65     0.58   -8.82

 (Reporting by Bruno Federowski; Editing by Jeffrey Benkoe)