November 14, 2016 / 2:37 PM / 2 years ago

EMERGING MARKETS-Brazil real weakens for 4th day; Mexico peso up

By Bruno Federowski
    SAO PAULO, Nov 14 (Reuters) - The Brazilian real weakened
more than its peers on Monday as traders' concerns over the
election of Donald Trump as U.S. president drove investors to
seek safer investments ahead of a local holiday.
    Other Latin American currencies were mixed after Trump
softened his campaign pledges.
    Worries that heavy public spending could lead the U.S.
Federal Reserve to raise rates by more than expected triggered
an emerging market selloff last week.
    The Brazilian real weakened 1 percent to 3.43 reais,
extending losses to 7.6 percent in four trading days.
    The Mexican peso, widely seen as most vulnerable to
Trump's campaign promises, strengthened 0.4 percent after
gaining over 1 percent the day before.
    The peso has been the world's worst-performing currency this
year on fears Trump could decrease trade and build a wall
between the Mexico and the United States, while also deporting
about 11 million people living illegally in the United States.
    In an interview aired on Sunday, Trump said some areas on
the border could instead be "fencing" rather than a wall and
added he would move to deport up to 3 million immigrants in the
country illegally who have criminal records. 
    Brazil's benchmark Bovespa stock index rose,
supported by shares of miner Vale SA as iron ore
futures in China climbed to their highest in nearly three years,
supported by stronger prices of steel and coking coal.
    Trump's pledges to invest heavily in U.S. infrastructure
have boosted demand for industrial metals, boosting shares of
steelmakers such as Gerdau SA.
    Brazilian stock market gains were limited, however, by
falling shares of bourse operator BM&FBovespa SA 
following third-quarter results.
    Some traders feared Trump-related volatility could weigh on
BM&FBovespa's results, despite a recent upswing in trading

    Key Latin American stock indexes and currencies at 1415 GMT:
 Stock indexes                                daily %    YTD %
                                     Latest    change   change
 MSCI Emerging Markets                841.29    -0.92     6.92
 MSCI LatAm                          2246.60     1.84    20.56
 Brazil Bovespa                     59569.31     0.65    37.41
 Chile IPSA                          4128.67    -0.52    12.19
 Chile IGPA                         20699.39    -0.45    14.04
 Colombia IGBC                       9627.74    -1.59    12.64
 Venezuela IBC                      23743.38    -1.74    62.76
 Currencies                                   daily %    YTD %
                                               change   change
 Brazil real                          3.4268    -1.04    15.18
 Mexico peso                         20.7700     0.43   -17.04
 Chile peso                           666.95     0.01     6.41
 Colombia peso                       3117.32    -0.04     1.67
 Peru sol                              3.405     0.03     0.26
 Argentina peso (interbank)          15.4750    -0.81   -16.11
 Argentina peso (parallel)             15.42    -0.45    -7.46

 (Reporting by Bruno Federowski; Editing by Bill Trott)
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