January 24, 2019 / 2:45 PM / 6 months ago

EMERGING MARKETS-Bovespa crosses 97,000 record-high; Latam FX weakens

    By Agamoni Ghosh
    Jan 24 (Reuters) - Brazil stocks climbed to a new
record-high on Thursday as investor sentiment remained
optimistic on a crucial pension reform amid a mixed global
equities picture, while currencies in Latin American fell
against a strong dollar.
    Global equities were mixed on the day with Asian stocks
rising but European stocks erasing earlier gains and Wall Street
opening lower after U.S. Commerce Secretary Wilbur Ross said the
United States and China were "miles and miles" from resolving
their trade dispute.
    The Bovespa hit a fresh record high crossing the
97,000 mark for the first time as market participants welcomed
Economy Minister Paulo Guedes' comments on crucial pension
reform for Brazil.
    In an interview with Reuters during the World Economic Forum
in Davos, Guedes stressed the scale of a pension reform that
investors see as the cornerstone of President Jair Bolsonaro's
economic agenda can yield savings of 700 billion to 1.3 trillion
reais in 10 years.
    "We continue to be optimistic on the prospect of a robust
pension reform, though the ambitious savings will most likely be
diluted as the reform makes its way through Congress," said Citi
analysts in a note.
    Most currencies in Latin American weakened as the U.S.
dollar climbed to a three-week high against the euro which
plunged as  European Central Bank President Mario Draghi said
economic risks have moved to the downside and near-term data is
likely to be weaker than previously anticipated.
    Brazil's real and Chile's peso slid between
0.2 and 0.3 percent, while gains were muted in Mexico's peso
 as a slide in oil prices and an environment of political
uncertainty in the region weighed. 
    Venezuela's opposition leader Juan Guaido declared himself
interim president on Wednesday, winning backing from Washington
and parts of Latin America and prompting socialist Nicolas
Maduro, the country's leader since 2013, to break relations with
the United States. 
    Dollar bonds of Venezuela's government hit their highest
level since 2017 on Thursday, after U.S. backing for Guaido
spurred investor hopes for a turnaround in the crisis-stricken
country.
    Key Latin American stock indexes and currencies at 1430 GMT:
    
 Stock indexes                             daily %
                               Latest       change
 MSCI Emerging Markets           1017.01      0.54
                                          
 MSCI LatAm                      2859.49      0.88
                                          
 Brazil Bovespa                 96844.74      0.46
                                          
 Mexico IPC                            -         -
                                          
 Chile IPSA                      5391.12     -0.22
                                          
 Argentina MerVal                      -         -
                                          
 Colombia IGBC                         -         -
                                          
                                                  
 Currencies                                daily %
                                            change
                                  Latest  
 Brazil real                      3.7729     -0.28
                                          
 Mexico peso                     18.9614      0.20
                                          
 Chile peso                       671.92     -0.06
                                          
 Colombia peso                         -         -
 Peru sol                              -         -
                                          
 Argentina peso (interbank)            -         -
                                          
 
    
    

 (Reporting by Agamoni Ghosh in Bengaluru
Editing by Nick Zieminski)
  
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