September 26, 2016 / 4:36 PM / 2 years ago

EMERGING MARKETS-Latam stocks, currencies mostly slip ahead of U.S. debate

By Bruno Federowski
    SAO PAULO, Sept 26 (Reuters) - Latin American mostly fell on
Monday as traders favored caution following a volatile week and
ahead of a widely awaited U.S. presidential debate.
    Uncertainty over the timing of the next U.S. rate increase
as well a possible agreement to curb global oil output has
boosted volatility in emerging markets recently.
    At is last policy meeting last week, the Federal Reserve
signaled it will tighten policy very slowly after a mixed batch
of economic figures. 
    But Boston Fed President Eric Rosengren said on Friday he
believed rates should rise now, increasing investors' confusion
over the outlook for U.S. monetary policy. 
    "It feels like the Fed is divided, so the market reacts
strongly to any slight comment" on the possibility of a U.S.
rate hike, Intercam brokerage trader Glauber Romano said.
    The Mexican peso  slipped 0.3 percent on
Monday after reaching new historic lows last week, while the
Brazilian real strengthened 0.6 percent.
    The November U.S. presidential elections have also
increasingly moved to the forefront as polls show a tight race
between Democrat Hillary Clinton and Republican Donald Trump.
    "The greater challenge for the FX market comes from the
uncertainty that a Trump presidency could create," analysts with
HSBC wrote in a client note.
    They said the Mexican peso would likely sell off in case
Trump emerges victorious as he pledged to curtail U.S. trade and
financial flows with Mexico.
    Clinton and Trump will face off for the first time on Monday
in a presidential debate after market close. 
    Key Latin American stock indexes and currencies at 1620 GMT:
 Stock indexes                                 daily %   YTD %
                                      Latest    change  change
 MSCI Emerging Markets                 905.65    -1.29   15.53
 MSCI LatAm                           2375.73    -1.01   31.16
 Brazil Bovespa                      58163.18    -0.91   34.17
 Mexico IPC                          47351.48    -0.89   10.18
 Chile IPSA                           4084.37    -0.24   10.98
 Chile IGPA                          20329.99     -0.2   12.00
 Argentina MerVal                    16380.32    -0.37   40.30
 Colombia IGBC                        9854.13    -0.84   15.29
 Venezuela IBC                       12666.94      1.3  -13.17
 Currencies                                    daily %   YTD %
                                                change  change
 Brazil real                           3.2257     0.64   22.36
 Mexico peso                          19.8050    -0.13  -13.00
 Chile peso                             661.4    -0.06    7.30
 Colombia peso                           2921    -0.07    8.50
 Peru sol                               3.361    -0.15    1.58
 Argentina peso (interbank)           15.2175    -0.28  -14.69
 Argentina peso (parallel)              15.76    -0.25   -9.45

 (Reporting by Bruno Federowski; Editing by Nick Zieminski)
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below