EMERGING MARKETS-Colombian markets fall, Brazil up after local votes

lunes 3 de octubre de 2016 17:47 GYT
 

(New throughout, updates prices and market activity, adds Chile
growth forecast)
    By Bruno Federowski
    SAO PAULO, Oct 3 (Reuters) - Colombia's stocks and currency
fell on Monday after voters rejected a peace deal with Marxist
FARC rebels, while Brazilian markets rose following municipal
elections.
    Many traders fear the Colombian vote could make it harder
for President Juan Manuel Santos' administration to gather
support for tax reform, a measure seen as crucial to maintain
the country's debt rating.  
    The government planned to unveil its tax reform plans to
lawmakers by Oct. 10, seeking to increase revenue by between 1
percent and 2 percent of gross domestic product.
    "It will be prudent to see how the dust settles, but the
market will likely price-in the risk of a downgrade to
Colombia's BBB rating," J.P.Morgan analysts wrote in a report.
    The Colombian peso weakened nearly 2 percent before
closing down 1.63 percent, while the IGBC stock index 
slipped 0.36 percent.
    Brazilian stocks rose as traders bet Brazil's President
Michel Temer could find it easier to approve painful fiscal
measures in Congress after Sunday's municipal elections.
    Political parties implicated in the Petrobras corruption
scandal suffered major setbacks in the elections and the leftist
Workers Party (PT), which has been spearheading efforts against
Temer's plans to cut spending, was the worst hit. 
    Blue-chip stocks such as lenders Itaú Unibanco Holding SA
 and Bradesco SA, as well as
state-controlled oil company Petróleo Brasileiro SA 
 provided the biggest boosts to the index.
    Meanwhile, Chile's economy is expected to recover from a
weak 2016 to grow 2.25 percent in 2017, Finance Minister Rodrigo
Valdes said on Monday. 
    The Chilean government expects the economy of the top copper
exporter to grow 1.75 percent in 2016, which would be the
slowest expansion since a 2009 recession.
        
    Key Latin American stock indexes and currencies at 2100 GMT:
 Stock indexes                             daily %       YTD %
                                            change      change
                              Latest                
 MSCI Emerging Markets          911.61         0.9       14.79
                                                    
 MSCI LatAm                    2416.27        1.49       32.05
                                                    
 Brazil Bovespa               59461.23        1.87       37.17
                                                    
 Mexico IPC                   47601.93        0.75       10.76
                                                    
 Chile IPSA                    4036.95        0.54        9.69
                                                    
 Chile IGPA                   20145.84         0.5       10.99
                                                    
 Argentina MerVal             16846.88        1.02       44.30
                                                    
 Colombia IGBC                 9811.86       -0.36       14.79
                                                    
 Venezuela IBC                13114.61        1.18      -10.10
                                                    
                                                              
 Currencies                                daily %       YTD %
                                            change      change
                                                    
                                Latest              
 Brazil real                    3.2105       -0.19       22.94
                                                    
 Mexico peso                   19.2955        0.39       11.99
                                                    
 Chile peso                        660       -0.44        7.53
                                                    
 Colombia peso                    2930       -1.63        8.17
 Peru sol                        3.381        0.00        0.98
                                                    
 Argentina peso (interbank)    15.1900        0.82      -14.53
                                                    
 Argentina peso (parallel)        15.6        0.71       -8.53
                                                    
 
 (Reporting by Bruno Federowski; Editing by Andrew Hay and David
Gregorio)