December 8, 2016 / 2:55 PM / 8 months ago

EMERGING MARKETS-Brazil real pares gains as ECB trims stimulus

By Bruno Federowski
    SAO PAULO, Dec 8 (Reuters) - The Brazilian real pared gains
on Thursday after the European Central Bank announced an
extension of its stimulus program but at a slower intensity.
   The ECB said it would cut monthly asset purchases to 60
billion euros from the current 80 billion euros but extend the
buys until the end of 2017. Markets had expected purchases to
stay at 80 billion but only for 6 more months. 
    The real firmed 0.2 percent after strengthening as
much as 1 percent earlier in the day. The country's benchmark
Bovespa stock index was 0.2 percent higher.
    Brazilian markets opened sharply higher after the country's
Supreme Court overturned an injunction that ordered the indicted
head of the Senate, Renan Calheiros, to step down, voting to
allow him to continue in the post but not in the presidential
line of succession. 
    Calheiros' potential ouster had stoked concern about
possible delays in the approval of austerity measures. He said
on Thursday that the final vote on the government's key spending
limit bill will be held as planned next Tuesday. 
    Shares of miner Vale SA added the most points to
the benchmark index as iron ore prices extended their recent
rally. Stock market gains were limited by falling shares of BRF
SA, the world's largest poultry exporter.
    The Mexican peso weakened after a four-day stretch
of gains. Stronger-than-expected U.S. jobs data raised concerns
that U.S. rates could rise faster over the coming months,
possibly draining capital away from emerging markets.
 
    Chilean and Colombian markets did not open on Thursday due
to local holidays.

    Key Latin American stock indexes and currencies at 1440 GMT:
    
 Stock indexes                           daily %   YTD %
                                          change  change
                              Latest              
 MSCI Emerging Markets           878.12     1.21    9.25
                                                  
 MSCI LatAm                     2331.48     0.16   27.22
                                                  
 Brazil Bovespa                61560.39     0.24   42.01
                                                  
 Mexico IPC                    45823.72     0.47    6.62
                                                  
 Chile IPSA                     4224.67     0.24   14.79
                                                  
 Chile IGPA                    21075.86     0.22   16.11
                                                  
 Argentina MerVal              17196.77    -0.22   47.29
                                                  
 Colombia IGBC                  9798.00    -0.18   14.63
                                                  
 Venezuela IBC                 35751.00       -1  145.07
                                                  
                                                        
 Currencies                              daily %   YTD %
                                          change  change
                                 Latest           
 Brazil real                     3.3958     0.22   16.23
                                                  
 Mexico peso                    20.4050    -0.32  -15.56
                                                  
 Chile peso                      654.82     0.00    8.38
                                                  
 Colombia peso                     3003    -0.02    5.54
 Peru sol                         3.403     0.00    0.32
                                                  
 Argentina peso (interbank)     15.9950    -0.50  -18.83
                                                  
 Argentina peso (parallel)        16.25    -0.43  -12.18
                                                  
 
 (Reporting by Bruno Federowski; Editing by Frances Kerry)

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