SAO PAULO, March 1 xx The Mexican peso
strengthened on Wednesday after U.S. President Donald Trump took
a conciliatory stance in a key speech, backing away from his
harsh campaign rhetoric.
The peso has weakened sharply since Trump's unexpected Nov.
8 election victory as he vowed to curtail trade and financial
flows with Mexico.
In a prime-time televised address to the country on Tuesday,
Trump offered a more restrained tone than during his election
campaign, telling Congress he was open to immigration reform.
The peso firmed 1 percent, outperforming other
mostly flat Latin American currencies.
Demand for emerging market currencies was muted after a
handful of U.S. Federal Reserve policymakers signaled the
possibility of a March interest rate increase.
Higher U.S. rates could drain investments away from
Still, Brazil's benchmark Bovespa stock index rose
0.7 percent, supported by rising shares of state-controlled oil
company Petróleo Brasileiro SA.
Petrobras, as the company is known, announced late on Friday
that it would cut prices for diesel and gasoline at domestic
In a client note, analysts at Credit Suisse Securities led
by André Natal said the spread between local gasoline prices and
import prices remains at attractive levels, at roughly 13
Brazilian markets did not open on Monday and Tuesday due to
a local holiday.
Key Latin American stock indexes and currencies at 1700 GMT:
Stock indexes daily % YTD %
MSCI Emerging Markets 937.93 0.17 8.59
MSCI LatAm 2627.30 1.05 11.08
Brazil Bovespa 67154.20 0.74 11.50
Mexico IPC 47438.71 1.24 3.93
Chile IPSA 4382.14 0.51 5.56
Chile IGPA 21918.07 0.49 5.71
Argentina MerVal 19358.68 1.26 14.43
Colombia IGBC 9909.00 0.2 -2.16
Venezuela IBC 36228.78 1.45 14.27
Currencies daily % YTD %
Brazil real 3.1039 0.25 4.68
Mexico peso 19.9050 1.00 4.22
Chile peso 650.5 -0.05 3.11
Colombia peso 2933.16 -0.32 2.33
Peru sol 3.255 0.18 4.88
Argentina peso (interbank) 15.4500 0.19 2.75
Argentina peso (parallel) 16.2 0.49 3.83
(Reporting by Bruno Federowski; Editing by Jonathan Oatis)