January 29, 2019 / 2:44 PM / 6 months ago

EMERGING MARKETS-Brazil stocks in recovery mode; Latam currencies steady

    By Agamoni Ghosh
    Jan 29 (Reuters) - Stocks in Brazil were in recovery mode on
Tuesday after diving in the previous session amid a rout in
shares of the world's largest iron-ore miner, Vale, while Latin
American currencies strengthened ahead of the U.S. Federal
Reserve's two-day policy meet.  
    Global equities were just steady on the day with investors
opting for safer assets and gold prices touching a eight-month
high. Sentiment was somewhat muted by fresh charges against
Chinese telecom giant Huawei          by U.S. authorities, days
before the next round of trade talks between Washington and
Beijing.
    Investors are now keenly awaiting the Fed policymaking
meeting that starts Tuesday, hoping the U.S. central bank will
pause its rate-hike cycle. 
    The Bovespa index in Sao Paulo climbed over 1
percent in broad-based gains. Eletrobras was the top
gainer after the Brazilian government said it planned to
privatize the state utility firm by selling additional shares on
the market to raise capital.
    Vale rose over 3 percent after tanking nearly 25
percent on Monday and wiping out close to $19 billion of its
market value. The rout, the worst in the company's history,
followed the rupture of a Vale mining dam at Brumadinho last
week, a disaster that is expected to leave a death toll of more
than 300 people.
    Three employees of the Brazilian miner and two other
engineers working on behalf of the company were arrested on
Tuesday. The company said in a statement it was cooperating with
investigators.
    Payments firm Cielo SA fell 0.7 percent, the most
on the Bovespa, after the company lowered its revenue forecast
for 2019.
    Stocks in Chile fell 0.2 percent led by
declines in shares of retailer Ripley Corp SA.   
    In currencies, Brazil's real rose 0.8 percent while
Mexico's peso firmed 0.3 percent as market participants
awaited Fed's interest rate decision, hoping for a rate-pause
which would benefit emerging market currencies.  
    Debt investors in emerging markets were also focused on
Venezuela after the U.S. government ramped up the pressure on
leftist President Nicolas Maduro with sweeping sanctions on
Venezuelan state-owned oil firm PDVSA. 

 Key Latin American stock indexes and currencies at 1400 GMT  

 Stock indexes                                     daily %
                             Latest                 change
 MSCI Emerging Markets               1030.81          0.27
                                              
 MSCI LatAm                          2874.44          1.43
                                              
 Brazil Bovespa                     96517.30          1.12
                                              
 Mexico IPC                                -             -
                                              
 Chile IPSA                          5428.13         -0.33
                                              
 Argentina MerVal                          -             -
                                              
 Colombia IGBC                             -             -
                                              
                                                          
 Currencies                                        daily %
                                      Latest        change
 Brazil real                          3.7326          0.83
                                              
 Mexico peso                         18.9890          0.26
                                              
 Chile peso                            669.4          0.16
                                              
 Colombia peso                             -             -
 Peru sol                                  -             -
                                              
 Argentina peso (interbank)                -             -
                                              
 

 (Reporting by Agamoni Ghosh in Bengaluru
Editing by Frances Kerry)
  
Nuestros Estándares:Los principios Thomson Reuters
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