July 4, 2018 / 8:48 PM / 3 months ago

EMERGING MARKETS-LatAm market volumes low on U.S. holiday; Eletrobras jumps

 (Updates prices, adds Mexico president-elect business meeting)
    By Bruno Federowski
    BRASILIA, July 4 (Reuters) - Brazil's benchmark Bovespa
index jumped more than 1 percent on Wednesday in
low-volume trading on the U.S. Independence Day holiday, while
shares of Brazilian power utility Centrais Elétricas Brasileiras
SA soared.
    Financial markets across Latin America were rangebound as
traders avoided making big bets amid low liquidity after days of
heightened volatility. Wall Street indexes were all closed on
Wednesday in observance of the holiday. 
    Emerging markets have been battered by concerns over a
potential trade war between the United States and China, as well
as local political woes.
    "Trading volumes are very low, it will be hard to determine
a trend for the markets today," a trader at a São Paulo-based
brokerage said.
    The Mexican peso, in particular, has oscillated strongly in
recent days after leftist president-elect Andres Manuel Lopez
Obrador won the country's election and stoked concerns of
populism.
    The Mexican peso inched up 0.14 percent on
Wednesday, extending a rebound after advisors to Lopez Obrador
sought to assuage investors' worries.
    The head of Mexico's business lobby met with the
president-elect on Wednesday, describing the encounter as one of
certainty and trust.
    In Brazil, shares of power utility Eletrobras
soared nearly 18 percent after the lower house of Congress late
on Tuesday agreed to speed approval of a bill seen as key to the
sale of some of the firm's money-losing distribution units.

    The vote speeds up a project dealing with the debt of six
Eletrobras distribution units, seen as a major sticking point
for any potential sale.
    
    Key Latin American stock indexes and currencies at 1933 GMT:

 Stock indexes                 Latest      Daily    YTD pct
                                            pct      change
                                           change   
 MSCI Emerging Markets          1,055.92     -0.17      -8.7
                                                    
 MSCI LatAm                     2,481.76      0.75     -12.9
 Brazil Bovespa                74,593.47      1.26     -2.37
 Mexico IPC                    47,278.77      0.48     -4.21
 Chile IPSA                     5,250.33     -0.09     -5.65
 Chile IGPA                    26,619.88      -0.1     -4.86
 Argentina MerVal              27,398.62      1.13     -8.87
 Colombia IGBC                 12,389.80      0.23      8.96
 Venezuela IBC                122,449.02     17.28  9,594.02
                                                            
 Currencies                    Latest      Daily    YTD pct
                                            pct      change
                                           change   
 Brazil real                      3.9130     -0.48    -15.33
 Mexico peso                     19.4230      0.14      1.42
 Chile peso                        651.9     -0.36     -5.71
 Colombia peso                   2,904.3      0.09      2.68
 Peru sol                           3.29     -0.12     -1.61
 Argentina peso (interbank)      28.0400     -0.14    -33.67
                                                    
 Argentina peso (parallel)          28.9      0.35    -33.46
                                                    
 
 (Reporting by Bruno Federowski in Brasilia and Daina Beth
Solomon in Mexico City, editing by G Crosse)
  
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