July 13, 2016 / 4:26 PM / 2 years ago

EMERGING MARKETS-Latam currencies seesaw following 3-day rebound in risk appetite

By Bruno Federowski
    SAO PAULO, July 13 (Reuters) - Latin American currencies
seesawed on Wednesday as global risk appetite faded following a
three-day rally.
    Investors turned to country-specific issues as they waited
for more clues over the possibility of fresh economic stimulus
in countries such as Japan and the UK.
    Hopes for government action to curtail financial turmoil
following Britain's decision to leave the European Union had
lifted the Mexican peso  in the last three
trading days.
    But the currency weakened on Thursday on the back of lower
crude prices  after U.S. stockpiles fell less than
expected last week.
    The Chilean peso  neared its strongest levels
in 2-1/2 months as solid China imports data boosted prices of
copper past $5,000 a tonne.
    "Sentiment is muted and markets are focused on idiosyncratic
factors today. It's a wait-and-see game," Glauber Romano, a
forex trader with Intercam brokerage in Brazil, said.
    Caution lingered in Brazil ahead of a key vote to elect a
new speaker of the lower house of Congress. The race has pitted
interim President Michel Temer's allies against each other and
raised concerns over his coalition. 
    Brazil's benchmark Bovespa stock index fell 0.6
percent on profit-taking following a five-day streak of gains,
weighed down by shares of state-controlled oil company Petróleo
Brasileiro SA .
    Barclays analysts cut their recommendation for voting shares
of Petrobras, as the company is known, to "underweight" from
"equal weight." Non-voting shares were cut to "equal weight"
from "overweight."
    Shares of steelmaker Companhia Siderúrgica Nacional SA
 dropped 5 percent after posting lofty gains over the
previous sessions.
    The company will sell its stake in rival Usinas Siderúrgicas
de Minas Gerais SA only after it minimizes losses on
its investment, executives said on Wednesday. 

    Key Latin American stock indexes and currencies at 1615 GMT:
 Stock indexes                               daily %     YTD %
                                              change    change
 MSCI Emerging Markets               855.83      0.2      7.55
 MSCI LatAm                         2304.05    -0.75     26.87
 Brazil Bovespa                    53906.20    -0.65     24.35
 Mexico IPC                        46394.04    -0.08      7.95
 Chile IPSA                         4048.89    -0.27     10.02
 Chile IGPA                        20010.54    -0.24     10.24
 Colombia IGBC                      9792.69     0.05     14.57
 Venezuela IBC                     12108.45     1.55    -17.00
 Currencies                                  daily %     YTD %
                                              change    change
 Brazil real                         3.2892     0.22     20.00
 Mexico peso                        18.3865    -0.25     -6.29
 Chile peso                           656.7     0.43      8.07
 Colombia peso                      2936.62    -0.75      7.92
 Peru sol                              3.28     0.03      4.09
 Argentina peso (interbank)         14.5800    -0.14    -10.96
 Argentina peso (parallel)               15     0.60     -4.87

 (Reporting by Bruno Federowski; Additional reporting by Paula
Arend Laier; Editing by Richard Chang)
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