By Bruno Federowski
SAO PAULO, Sept 15 Brazil's currency and stocks
rose on Thursday after weak U.S. economic figures reduced
expectations of an imminent rate hike, but rising poll numbers
for U.S presidential candidate Donald Trump pushed Mexico's peso
to close at a record low.
But concerns lingered about tepid economic growth in
developed economies, prospects of less monetary stimulus in
Europe and uncertainty over the U.S. presidential election.
Emerging market volatility has spiked in recent weeks as
mixed economic data and conflicting remarks by U.S. Federal
Reserve policymakers kept investors guessing over the timing of
the central bank's next moves.
Some worry that even rock-bottom rates have lost their
capacity to boost economic growth. That could lead the Fed to
increase rates despite signs of weakness at home, but keep them
at historically low levels.
U.S. retail sales fell more than expected, and manufacturing
activity slumped in August, according to reports on Thursday,
although the labor market continued to strengthen last week and
underlying producer inflation rose last month.
Traders now await policy meetings from the Fed, the Bank of
Japan and the Bank of England next week for more clarity over
the future of global monetary policy.
Brazil's Bovespa rose 1.49 percent to 57.909 points,
helped by a 3.04 percent rise in preferential shares of
Petrobras on a pick-up in oil prices. The real
strengthened 1.24 percent to 3.33017 per dollar.
Uncertainty about the outcome of the U.S. presidential
election as Republican nominee Donald Trump rises in polls has
also weighed on sentiment recently.
This is particularly affected the Mexican peso
as Trump has pledged to curtail trade and financial
flows with the neighboring country.
Mexico's peso closed at its lowest level ever,
weakening 0.46 percent to 19.3635 per dollar, while the IPC
stock index rose 0.34 percent, helped by a pickup in
Wal-Mart de Mexico shares.
(Reporting by Bruno Federowski; Editing by Lisa Von Ahn and