March 13, 2019 / 3:05 PM / 2 months ago

EMERGING MARKETS-Latam FX rises as data supports expectations of patient Fed

    By Aaron Saldanha
    March 13 (Reuters) - Most Latin American currencies rose
against a softer dollar on Wednesday after data supported hopes
the U.S. Federal Reserve would be patient about raising
borrowing costs in the world's top economy.
   U.S. producer prices barely rose in February, reinforcing the
Fed's wait-and-see approach on further rate raises this year.
The data aided broad risk appetite in emerging markets, which
were battered in 2018 as the dollar strengthened on multiple
rate hikes.      
    "A weaker U.S. dollar would ease global funding conditions
and may work in favor of prolonging the global economic
expansion," Morgan Stanley strategists wrote in a note.    
    Mexico's peso rose 0.3 percent, half the gain local
stocks saw. Data showed industrial activity in Latin
America's second-largest economy rose 0.6 percent in January
from the previous month, further supporting sentiment.

     President Andres Manuel Lopez Obrador said he does not
"rule out" a listing in the local market for heavily indebted
state oil firm Pemex, including some form of new bond issuance,
but he added that such a move to attract new funds is not
necessary.
    Colombia's peso firmed 0.2 percent, while equities on
the local bourse tacked on 0.4 percent. Shares of energy
firm Ecopetrol SA rode firmer oil prices
higher, gaining 0.6 percent.
    Chilean stocks added 0.4 percent, while their
peers in Argentina rose 1.1 percent.
    Brazilian assets were the exception to the norm among the
regional peers, as the real lost steam after three
straight sessions of gains, sliding 0.4 percent.
    A constitutional and justice committee is expected to be
formed to review President Jair Bolsonaro's proposal to reform
Brazil's bloated pension system, which is seen as critical by
investors in Latin America's top most populous country.
    Sao Paulo-traded shares also fell, down 0.2 percent,
as losses among financials and industrials took their toll.
    Gains in the materials and energy sectors helped avert
steeper losses for the benchmark. State-run oil firm Petroleo
Brasileiro SA saw its common shares and preferred
shares rise 1.6 percent and 0.6 percent,
respectively, tracking higher oil prices. 
        
    Key Latin American stock indexes and currencies at 1429 GMT
    
 Stock indexes                                  daily %
                                    Latest       change
 MSCI Emerging Markets                1049.59     -0.18
 MSCI LatAm                           2806.95     -0.24
 Brazil Bovespa                      97591.52     -0.24
 Mexico IPC                          41969.32      0.55
 Chile IPSA                           5311.33      0.41
                                               
 Argentina MerVal                    34019.49      1.13
 Colombia IGBC                       12652.90      0.44
                                                       
 Currencies                                     daily %
                                                 change
                                       Latest  
 Brazil real                           3.8261     -0.27
 Mexico peso                          19.2960      0.28
                                               
 Chile peso                             664.5      0.21
 Colombia peso                        3140.33      0.21
 Peru sol                               3.294      0.09
 Argentina peso (interbank)           41.6500     -0.31
                                               
 
 (Reporting by Aaron Saldanha in Bengaluru
Editing by Nick Zieminski)
  
Nuestros Estándares:Los principios Thomson Reuters
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