November 7, 2016 / 1:13 PM / 2 years ago

EMERGING MARKETS-Mexico peso firms as FBI clears Clinton in email probe

By Bruno Federowski
    SAO PAULO, Nov 7 (Reuters) - The Mexican peso firmed to the
strongest in one-and-a-half weeks as traders boosted bets on a
Hillary Clinton victory in the U.S. presidential elections after
the FBI said it would take no further action against her.
    On Sunday, two days before the U.S. vote, the FBI said it
stood by its earlier finding that no criminal charges were
warranted against Clinton for using a private email server for
government work. 
    Recent polls have showed a very tight battle with a slight
lead for Clinton against Republican Donald Trump, who has
promised to limit U.S. trade with neighbor Mexico.
    The Mexican peso  strengthened 2 percent,
eyeing its biggest daily gain since Sept. 27. The currency
weakened during the last two weeks as surveys showed Trump
gaining impetus in the race.
    Other emerging market currencies followed the Mexican peso
higher, with the Russian rouble snapping a three-day
losing streak to strengthen 1 percent, also helped by higher
crude oil futures.
    Brazil's benchmark Bovespa stock index rose 2.3
percent. Gains were widespread, with all of the shares in the
index rising.
    Shares of Brazil's Gol Linhas Aéreas Inteligentes SA
 jumped 8.7 percent after airline company swung to a
third-quarter net profit of 65.9 million reais  ($20.5 million)
from a net loss a year ago. 
    Gol forecast a reduction of 8 percent in total capacity this
year compared to previous estimates of between 5 percent and 8
percent. Credit Suisse analysts said the change shows a
commitment to cutting costs in Gol's local market even after
strong earnings.
    Key Latin American stock indexes and currencies at 1250 GMT:
 Stock indexes                              daily %      YTD %
                                             change     change
 MSCI Emerging Markets              891.04     1.24      10.83
 MSCI LatAm                        2526.79      2.6      34.59
 Brazil Bovespa                   62992.13     2.26      45.31
 Chile IPSA                        4235.86     0.54      15.10
 Chile IGPA                       21171.88     0.47      16.64
 Colombia IGBC                     9997.77    -0.55      16.97
 Venezuela IBC                    16680.50     7.02      14.34
 Currencies                                 daily %      YTD %
                                             change     change
 Brazil real                        3.2081     0.70      23.03
 Mexico peso                       18.6395     2.00      -7.56
 Chile peso                          655.1     0.35       8.33
 Argentina peso (interbank)        15.0500     0.33     -13.74
 Argentina peso (parallel)           15.37     0.00      -7.16

 (Reporting by Bruno Federowski; Editing by Daniel Flynn and
Chizu Nomiyama)
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