April 22, 2016 / 3:52 PM / 2 years ago

EMERGING MARKETS-Brazil stocks, currency fall after local market holiday

By Bruno Federowski and Paula Arend Laier
    SAO PAULO, April 22 (Reuters) - Brazil's equities and
currency fell on Friday as investors adjusted to a Latin
American selloff the previous day, when the country's markets
were closed due to a holiday.
    Slumps in commodity prices and U.S. stocks drove investors
to seek refuge in safer assets on Thursday, hammering emerging
market securities.
    U.S.-listed shares of Vale SA  fell
steeply on Thursday, tracking a decline in iron ore prices. The
miner's Brazil-listed stocks caught up on Friday,
dropping 6 percent and weighing on the benchmark Bovespa stock
    Shares of state-controlled oil company Petróleo Brasileiro
SA, however, rose 3.3 percent as oil prices rebounded
from the previous day's tumble. Crude prices looked set to post
their thirdly weekly gain in a row amid signs that a global
supply glut could be easing. 
    Shares of Petrobras, as the company is known, led
the Argentine stock exchange higher.
    Brazil's real currency weakened as the central bank
maintained its policy of purchasing dollars in futures markets
from local investors.
    The bank has bought around $32 billion so far this month
using instruments known as reverse currency swaps as the real
rallied on expectations of President Dilma Rousseff's ouster.
    Speaking at the United Nations, Rousseff warned Brazil is
going through a "grave" political moment. She could be removed
from office in weeks, pending a Senate judgment. 
    Key Latin American stock indexes and currencies at 1530 GMT:
 Stock indexes                               daily %    YTD %
                                Latest        change   change
 MSCI Emerging Markets               844.30     -1.1      7.5
 MSCI LatAm                         2211.34    -1.47    22.65
 Brazil Bovespa                    53048.93    -1.09    22.37
 Mexico IPC                        45651.35     0.21     6.22
 Chile IPSA                         3973.54    -0.32     7.97
 Chile IGPA                        19522.06    -0.24     7.55
 Argentina MerVal                  14162.87     1.71    21.31
 Colombia IGBC                     10191.01     0.24    19.23
 Currencies                                  daily %    YTD %
                                              change   change
 Brazil real                         3.5877    -1.65    10.01
 Mexico peso                        17.4450     0.09    -1.23
 Chile peso                           669.2    -0.63     6.05
 Colombia peso                      2942.86    -0.06     7.69
 Peru sol                            3.2779    -0.33     4.15
 Argentina peso (interbank)         14.4650    -1.21   -10.25
 Argentina peso (parallel)            14.77     0.20    -3.39

 (Reporting by Bruno Federowski and Paula Arend Laier; Editing
by Meredith Mazzilli)
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