July 25, 2017 / 8:46 PM / a year ago

EMERGING MARKETS-Brazil stocks hit one-month high on commodities boost

 (Updates prices)
    By Bruno Federowski
    SAO PAULO, July 25 (Reuters) - Brazilian stocks hit a one-month high on
Tuesday as commodity price gains boosted shares of local blue-chips Vale SA and
Petróleo Brasileiro SA.
    China-listed iron ore futures snapped a three-day losing streak on the back
of China's strong steel sector, lifting shares in Vale, the world's
largest iron ore miner. Shares in Bradespar SA, a key Vale
shareholder, rose about 5 percent.
    Rising crude futures lifted shares of Petrobras, as
Brazil's state-controlled oil company is known, after major producer Saudi
Arabia vowed to reduce exports next month to curb global oversupply.
    Gains on the benchmark index were limited by shares of Fibria SA
after the wood pulp producer posted a surprising quarterly net loss as a weaker
currency inflated its debt.
    Operating profits rose, supported by higher pulp prices and strong global
demand, but analysts said that boost is likely to fade in coming quarters.
    Most Latin American currencies seesawed as traders awaited the U.S. Federal
Reserve's policy decision to be announced on Wednesday.
    Money markets indicated a near-zero chance of an interest rate increase from
the U.S. central bank, and further Fed interest rate hikes are not seen as
likely until at least December. That could foster demand for Latin American
assets, which typically lure investors with higher yields.
    Brazil's central bank will announce a rate decision on the same day and
traders widely expect it to cut rates by an aggressive 100 basis points.

    In Mexico, shares in bottler and retailer Fomento Economico Mexicano (Femsa)
 fell after it reported a drop in quarterly profits, hurt by rising
    The Monterrey-based company controls the world's biggest Coke bottler,
Coca-Cola Femsa. It also owns Oxxo convenience stores and has a stake
in Dutch beer company Heineken NV.
    The company's shares dropped 1.54 percent. 
    Key Latin American stock indexes and currencies at 2010 GMT:
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets         1060.36     -0.37     23.43
 MSCI LatAm                    2738.75       0.1     16.89
 Brazil Bovespa               65669.42      0.88      9.04
 Mexico S&P/BMV IPC           51723.18      0.11     13.32
 Chile IPSA                    5037.98      0.34     21.36
 Chile IGPA                   25162.37      0.33     21.36
 Argentina MerVal             21265.12     -0.21     25.70
 Colombia IGBC                10940.04      0.09      8.02
 Venezuela IBC               134583.50      1.55    324.48
 Currencies                              daily %     YTD %
                                          change    change
 Brazil real                    3.1662     -0.61      2.62
 Mexico peso                   17.7935     -0.33     16.58
 Chile peso                      650.9      0.12      3.04
 Colombia peso                  3030.2     -0.11     -0.95
 Peru sol                         3.25     -0.12      5.05
 Argentina peso                17.4700     -0.06     -9.13
 Argentina peso                  18.09     -0.22     -7.02

 (Reporting by Bruno Federowski; Editing by G Crosse and Chris Reese)
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