10 de marzo de 2017 / 17:16 / en 5 meses

EMERGING MARKETS-Brazil rate futures fall on bets of steeper rate cut

    By Bruno Federowski
    SAO PAULO, March 10 (Reuters) - Yields on Brazilian interest
rate futures fell sharply on Friday as slower-than-expected
inflation data fueled bets that the central bank will increase
the magnitude of interest rate cuts next month.
    Brazil's official inflation index rose at its tamest pace
since 2010 in the 12 months through February, below expectations
of all 24 economists polled by Reuters.
    Rate future yields indicated a 60 percent
probability that Brazil's central bank would cut rates by 100
basis points at its monetary policy meeting in April, traders
said, with a 40 percent chance of a 75 bps cut.
    The central bank has said the size of the rate cut will
hinge on inflation expectations and economic data.
    The bank cut the benchmark Selic overnight lending rate by
75 bps each in January and February. It currently stands at
12.25 percent.
    The prospect of lower rates also supported Brazil's
benchmark Bovespa stock index, which rose 0.3 percent.
    The Brazilian real strengthened 1 percent, leading
gains among Latin American currencies, after it slipped over 2
percent in the first four days of the week, its sharpest
four-session percentage drop in three months. 
    Strong U.S. jobs figures consolidated expectations that the
U.S. Federal Reserve will increase interest rates next week.
While that could reduce the allure of high-yielding emerging
market assets, traders said markets had anticipated the result.

    
    Key Latin American stock indexes and currencies at 1615 GMT:
 Stock indexes                           daily %     YTD %
                                          change    change
                              Latest              
 MSCI Emerging Markets           926.35     0.37      7.04
                                                  
 MSCI LatAm                     2538.08     0.62      7.77
                                                  
 Brazil Bovespa                64803.80     0.34      7.60
                                                  
 Mexico IPC                    47250.20    -0.03      3.52
                                                  
 Chile IPSA                     4470.15     0.05      7.68
                                                  
 Chile IGPA                    22461.25     0.05      8.33
                                                  
 Argentina MerVal              18815.66     0.16     11.22
                                                  
 Colombia IGBC                  9910.70     0.31     -2.15
                                                  
 Venezuela IBC                 38687.33    -0.66     22.02
                                                  
                                                          
 Currencies                              daily %     YTD %
                                          change    change
                                 Latest           
 Brazil real                     3.1637     0.96      2.70
                                                  
 Mexico peso                    19.7025     0.65      5.29
                                                  
 Chile peso                       663.7     0.20      1.05
                                                  
 Colombia peso                   2988.2     0.23      0.45
 Peru sol                         3.285     0.06      3.93
                                                  
 Argentina peso (interbank)     15.4600     0.58      2.68
                                                  
 Argentina peso (parallel)           16     0.12      5.13
                                                  
 

 (Reporting by Bruno Federowski; Editing by W Simon)
  

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