July 26, 2017 / 11:17 PM / in a year

EMERGING MARKETS-Mexican stocks dip while peso gains after Fed decision

 (Updates prices, recasts with Mexico)
    By Bruno Federowski
    SAO PAULO, July 26 (Reuters) - The Mexican stock exchange
edged lower on Wednesday for the first time in five sessions
while the country's peso currency extended gains after the U.S.
Federal Reserve kept interest rates unchanged.
    The Fed kept its benchmark lending rate in a target range of
1.00 percent to 1.25 percent, which was expected.
    Mexico's benchmark S&P/BMV IPC stock exchange fell 0.22
percent to 51,600.26 points, dragged down by shares of leading
cement maker Cemex, following publication of the company's mixed
second-quarter results.
    The peso firmed 0.99 percent to trade at 17.5905 pesos per
U.S. dollar.
    "The Federal Reserve's decision points to the fact that it
is a little more worried about inflation and that this could
have implications for the normalization and rate hike plan,"
said Juan Carlos Alderete, an analyst at Banorte-Ixe.
    Brazil's central bank cut interest rates below 10 percent
for the first time in nearly four years on Wednesday, keeping a
fast pace of monetary easing. 
    The bank's nine-member monetary policy committee, known as
Copom, cut its benchmark Selic rate BRCBMP=ECI by 100 basis
points for the third straight time to 9.25 percent.
    Most major Latin American currencies edged higher on
Wednesday as investors stuck to bets the Federal Reserve would
stand pat on interest rates.
    Brazil's benchmark Bovespa stock index slipped 1.00
percent as traders feared the government could cut its fiscal
target this year as a slower-than-expected economic recovery
curbed fiscal revenues.
    Those concerns gained further impetus after a judge
suspended a large fuel tax increase announced last week, taking
away one option for covering the country's budget gap.

Latin American stock indexes and currencies at 22:01 GMT:
 Stock indexes                                 daily %     YTD %
                                      Latest    change    change
 MSCI Emerging Markets               1,062.29    +0.06    +23.20
 MSCI LatAm                          2,725.25    -0.60    +16.43
 Brazil Bovespa                     65,010.57    -1.00     +7.94
 Mexico S&P/BVM IPC                 51,600.26    -0.22    +13.05
 Chile IPSA                          5,042.09    +0.17    +21.46
 Chile IGPA                         25,190.39    +0.19    +21.49
 Argentina MerVal                   21,202.91    -0.19    +25.33
 Colombia IGBC                      10,913.87    -0.25     +7.76
 Venezuela IBC                     134,583.50    +0.00   +324.48
 Currencies                                    daily %     YTD %
                                                change    change
 Brazil real                            3.138    +0.13     +3.53
 Mexico peso                           17.590    +0.99    +17.93
 Chile peso                           644.000    +0.00     +4.15
 Colombia peso                      3,013.880    +0.00     -0.41
 Peru sol                               3.245    +0.00     +5.21
 Argentina peso (interbank)            17.500    +0.00     -9.29
 Argentina peso (parallel)             18.220    -0.44     -7.68


 (Additional reporting by Skeky Espejo; Editing by Tom Brown)
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