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EMERGING MARKETS-LatAm currencies gain after Trump fires FBI chief
May 11, 2017 / 3:27 AM / 4 months ago

EMERGING MARKETS-LatAm currencies gain after Trump fires FBI chief

 (Adds closing market prices)
    SAO PAULO, May 11 (Reuters) - Mexico's and Brazil's
currencies closed stronger on Wednesday after U.S. President
Donald Trump unexpectedly fired FBI director James Comey,
fueling expectations of delays in the implementation of the
government's economic agenda.
    Trump has pledged to spend heavily on infrastructure and cut
taxes, fostering bets on additional inflationary pressures that
could force the Federal Reserve to increase interest rates
faster than expected. 
    A slower pace of rate hikes would bolster the allure of
emerging market assets, which offer higher yields than their
developed peers.
    The currencies of Brazil and Mexico gained
by more than 0.5 percent, boosted by higher oil prices that
helped lift the shares of Brazilian state-controlled oil company
Petroleo Brasileiro SA, or Petrobras. 
    Brazil's Bovespa stock index rose 1.62 percent on
Wednesday to a more than two-month high as markets were
optimistic about pension reform passing Congress.
    Shares of Telefonica Brasil SA also helped drive
gains in Bovespa after the telecommunications carrier posted a
13 percent increase in recurring net income.
    Key Latin American stock indexes and currencies at market
close:
    
 Stock indexes                             daily %   YTD %
                                  Latest    change  change
 MSCI Emerging Markets             998.82     0.39    15.4
                                                    
 MSCI LatAm                       2676.35      1.7   14.34
                                                    
 Brazil Bovespa                  67349.73     1.62   11.83
 Mexico IPC                      49930.54    -0.02    9.39
 Chile IPSA                       4825.49     0.37   16.24
                                                    
 Chile IGPA                      24203.18     0.31   16.73
 Argentina MerVal                21510.00     1.74   27.14
                                                    
 Colombia IGBC                   10541.79      0.6    4.08
                                                    
 Venezuela IBC                   60656.97     2.16   91.32
                                                          
 Currencies                                daily %   YTD %
                                            change  change
                                   Latest           
 Brazil real                       3.1668     0.57    2.54
                                                    
 Mexico peso                      19.0150     0.81    8.33
                                                    
 Chile peso                         672.0     0.00   -0.19
                                                    
 Colombia peso                    2940.41     0.02    2.08
 Peru sol                           3.293     0.00    3.67
                                                    
 Argentina peso (interbank)        15.500     0.16    2.42
                                                    
 Argentina peso (parallel)          15.89     0.38    5.85
                                                    
 
 (Reporting by Bruno Federowski and Mitra Taj; Editing by Tom
Brown and Biju Dwarakanath)
  

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