June 4, 2018 / 9:17 PM / a year ago

EMERGING MARKETS-Brazil stocks up as Petrobras shares bounce back

 (Updates prices)
    By Bruno Federowski
    BRASILIA, June 4 (Reuters) - Brazilian stocks rose on
Monday, propelled by rebounding shares of Petróleo Brasileiro SA
 after the appointment of a former top executive as
its chief executive reduced concerns of government meddling in
the state-owned oil company.
    Former Chief Financial Officer Ivan Monteiro will replace
Pedro Parente as head of Petrobras, as the company is known,
after Parente's surprise resignation last week over fuel pricing
    Petrobras shares rose as much as 8.5 percent on Monday,
adding the most points to Brazil's benchmark Bovespa stock index
 after tumbling 37 percent over the last two weeks amid
nationwide truckers' strikes against high diesel prices.
    Under Parente, Petrobras set local fuel prices in line with
global prices, ending years of costly subsidies that raised the
company's debt but also leaving consumers at the mercy of
volatility of crude markets.
    In a report, Credit Suisse analyst Regis Cardoso said
Monteiro was the best possible pick to push through with
Petrobras' turnaround, though doubts still linger over the
company's independence and its pricing policy. He maintained a
"neutral" recommendation on the stock.
    The Mexican peso sank to about 20 per dollar, a decline of
0.7 percent, amid growing pessimism about the renegotiation of
the North American Free Trade Agreement. 
    "The market has ruled out the possibility that the
renegotiation of NAFTA will conclude in the near term," Gabriela
Siller, an analyst at Banco Base, wrote in a report. 
    Mexico's benchmark stock exchange inched up 0.51
percent, led by gains in Mexican miner Grupo Mexico
    A string of stronger-than-expected indicators on global
economic growth have rekindled demand for emerging market assets
in recent weeks after concerns of rising U.S. interest rates
drove a selloff in high-risk assets last month.
    Easing political tensions in Italy also contributed to
brightening investors' mood after political parties there took
steps to form a new government.    
    Key Latin American stock indexes at 20:34 GMT:
 Stock indexes                  daily   YTD %
                                    %  change
                     Latest    change  
 MSCI Emerging        1146.74    1.46   -1.01
 MSCI LatAm           2603.95    1.37   -7.93
 Brazil Bovespa      78596.06    1.76    2.87
 Mexico IPC          45243.98    0.51   -8.33
 Chile IPSA           5558.50    1.59   -0.11
 Chile IGPA          28097.55    1.42    0.42
 Argentina MerVal    29018.58    2.05   -3.48
 Colombia IGBC       12435.11    1.12    9.36
 Venezuela IBC           0.00       0  -100.0
 (Reporting by Bruno Federowski; Additional reporting by Paula
Laier in São Paulo and Julia Love in Mexico City)
Nuestros Estándares:Los principios Thomson Reuters
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below