July 13, 2017 / 11:04 PM / a month ago

EMERGING MARKETS-Mexican peso up on cenbank rate hike comments; Brazil shares rise

 (Recasts headline and lead with Mexican peso rising; updates
prices)
    SAO PAULO, July 13 (Reuters) - Mexico's peso currency firmed
on Thursday after the central bank governor said interest rate
hikes could be paused for some time, but he knocked down market
speculation that there would be rate cuts before mid-2018.
    Banco de Mexico Governor Agustin Carstens said in an
interview with Reuters that talk among private economists that
rates would be reduced early next year diverged from the bank's
view, which was that it would take some time to consolidate
inflation toward the bank's 3 percent target.
    The Mexican peso firmed 0.52 percent on Thursday,
its sixth straight daily gain, and appreciated after Carsten's
comments were published.
    In Brazil, shares rose as JBS SA, the world's
largest meatpacker, stock jumped 9.4 percent after the company
got permission from an appeals court to sell assets.

    The ruling "sends a positive signal related to the company's
divestment plan," analysts at UBS Securities wrote in a note to
clients, referring to JBS's 6 billion reais ($1.9 billion)
asset-sale program.
    Brazil's benchmark Bovespa stock index rose 0.5
percent, but the Brazilian real was nearly flat on
investor caution over the political environment.
    A congressional committee was set to vote on Thursday on
corruption charges against President Michel Temer after its
rapporteur recommended the body vote to put him on trial. 
    Some traders fear that could delay the implementation of his
agenda of structural reforms, which includes revamps of the
country's pension system and labor laws. 
    Most other Latin American currencies strengthened after U.S.
Federal Reserve Chair Janet Yellen's dovish tone in testimony to
a Senate panel supported expectations of a slow pace of rate
hikes in coming months.
    In Chile, the central bank kept the benchmark interest rate
 unchanged at 2.5 percent at its monthly meeting on
Thursday, as widely expected, and said it maintained a neutral
bias.
        
    Key Latin American stock indexes and currencies at 2200 GMT:
    
 Stock indexes                     Latest  daily %   YTD %
                                            change  change
 MSCI Emerging Markets            1040.72     1.05    20.7
                                                    
 MSCI LatAm                       2687.50     0.98   14.82
 Brazil Bovespa                  65178.35     0.53    8.22
 Mexico IPC                      50968.76     0.31   11.67
 Chile IPSA                       4986.41     0.59   20.11
 Chile IGPA                      24879.35     0.59   19.99
 Argentina MerVal                21976.37    -1.13   29.90
 Colombia IGBC                   11113.00    -0.08    9.72
 Venezuela IBC                  128100.21     2.88  304.04
                                                          
 Currencies                        Latest  daily %   YTD %
                                            change  change
                                                    
                                                    
 Brazil real                       3.2075    -0.12    1.28
                                                    
 Mexico peso                       17.680     0.52   17.33
                                                    
 Chile peso                         660.6     0.36    1.53
 Colombia peso                    3045.80     0.03   -1.36
 Peru sol                           3.243     0.25    3.37
                                                    
 Argentina peso (interbank)       16.9475     0.01   -6.33
                                                    
 Argentina peso (parallel)          17.55    -0.57   -4.16
                                                    
 
    
    

 (Reporting by Bruno Federowski; Editing by Chris Reese and
Leslie Adler)
  

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