February 26, 2019 / 3:00 PM / 7 months ago

EMERGING MARKETS-Latam FX broadly firms, Brazil's real recoups early losses

    By Aaron Saldanha
    Feb 26 (Reuters) - Most Latin American currencies firmed on
Tuesday against the dollar ahead of congressional testimony from
U.S. Federal Reserve Chairman Jerome Powell, while Brazil's real
recovered early losses on the day of the incoming central bank
governor's senate confirmation hearing.
    Powell is expected to underline the Fed's sensitivity to
asset prices in testimony before the U.S. Senate Banking
Committee. A dovish outlook from the Fed has boosted sentiment
about emerging markets. 
    Investors are seeking more detailed clues now on coming
changes in borrowing costs and the pace at which the Fed will 
shrink its balance sheet, Brazil-based brokerage H.Commcor said
in a note.
    Brazil's real erased losses on statements by incoming
central bank chief Roberto Campos Neto, who said controlling
inflation is necessary for long term growth and that the
government should keep enacting reforms to stabilise public
sector finances.
    Sao Paulo-traded stocks rose 0.3 percent, aided by
gains among energy stocks and financials.    
    Firmer oil prices supported state-run oil giant
Petroleo Brasileiro SA (Petrobras), whose common shares
 and preferred shares each rose 1.1
percent.
    The company's distribution unit, Petrobras Distribuidora SA
, gained 2.4 percent on posting a jump in quarterly
net profit.
    Shares of planemaker Embraer SA flew 4.3 percent
higher, with shareholders approving a deal to sell 80 percent of
its commercial jet division to U.S. giant Boeing Co for
$4.2 billion.   
    Chile's peso firmed 0.2 percent to what would be a
6-1/2-month closing high if gains hold.
    The currency is seen as a correlation play in foreign
exchange markets on prices of copper, Chile's top
export. It has tacked on about 2.3 percent in the past week and
a half on hopes of improving global trade, mirroring a rise in
the metal's price.    
    Chilean stocks fell 0.3 percent, matching the
decline their Argentinean peers saw in early trade. 
    Argentina peso was little changed, while Mexico's
peso was 0.1 percent firmer.       
    
    Key Latin American stock indexes and currencies at 1430 GMT
 Stock indexes                                        daily %
                                          Latest       change
 MSCI Emerging Markets                      1064.05     -0.34
 MSCI LatAm                                 2889.56     -0.08
 Brazil Bovespa                            97554.16      0.32
 Mexico IPC                                       -         -
 Chile IPSA                                 5464.74     -0.27
 Argentina MerVal                          36211.52     -0.33
 Colombia IGBC                                    -         -
                                                             
 Currencies                                           daily %
                                                       change
                                             Latest  
 Brazil real                                 3.7486     -0.16
 Mexico peso                                19.1238      0.01
 Chile peso                                  649.35      0.12
 Colombia peso                              3095.65      0.19
 Peru sol                                     3.304      0.00
 Argentina peso (interbank)                 39.0100      0.10
                                                     
 
 (Reporting by Aaron Saldanha and Susan Mathew in Bengaluru and
Lais Martins in Sao Paulo; Editing by David Gregorio)
  
Nuestros Estándares:Los principios Thomson Reuters
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