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EMERGING MARKETS-Brazil real at 4-week high on hopes of capital inflows
March 20, 2017 / 5:14 PM / in 4 months

EMERGING MARKETS-Brazil real at 4-week high on hopes of capital inflows

4 Min Read

    By Bruno Federowski
    SAO PAULO, March 20 (Reuters) - The Brazilian real
strengthened to a four-week high on Monday on hopes of strong
capital inflows after a successful airport auction and in
anticipation of U.S. interest rates rising slowly in coming
months.
    Brazil awarded three European groups last week the rights to
operate four airports, drawing nearly double the minimum bids in
a sign of renewed investor appetite for assets from Latin
America's largest economy.
    The auction helped support demand for the Brazilian real
, which strengthened 0.8 percent on Monday.
    Other Latin American currencies also firmed, extending
recent gains after the U.S. Federal Reserve indicated it will be
gradual in tightening monetary policy.
    A slow cycle of U.S. rate hikes would spell good news for
risky assets, which tend to lure investors with the promise of
higher returns.
    Brazil's benchmark Bovespa stock index rose 0.5
percent as a slide in shares of meatpackers JBS SA
and BRF SA lost steam.
    Both stocks fell as much as 10 percent in early trading
after China and other countries suspended some imports of
Brazilian meat following a corruption scandal, before paring
back losses by early afternoon on bargain-hunting.
    
    Key Latin American stock indexes and currencies at 1655 GMT:
 Stock indexes                           daily %   YTD %
                                          change  change
                              Latest              
 MSCI Emerging Markets           973.63     0.83   11.98
                                                  
 MSCI LatAm                     2637.08     1.15   11.38
                                                  
 Brazil Bovespa                64555.17     0.54    7.19
                                                  
 Mexico IPC                    48593.44     1.12    6.46
                                                  
 Chile IPSA                     4665.89     0.29   12.39
                                                  
 Chile IGPA                    23391.85     0.27   12.82
                                                  
 Argentina MerVal              19654.81     1.13   16.18
                                                  
 Colombia IGBC                  9915.11    -0.49   -2.10
                                                  
 Venezuela IBC                 37849.62    -0.09   19.38
                                                  
                                                        
 Currencies                              daily %   YTD %
                                          change  change
                                 Latest           
 Brazil real                     3.0755     0.80    5.65
                                                  
 Mexico peso                    19.0060     0.49    9.14
                                                  
 Chile peso                       660.2     0.29    1.59
                                                  
 Colombia peso                     2912     0.05    3.07
 Peru sol                         3.247     0.06    5.14
                                                  
 Argentina peso (interbank)     15.6250    -0.38    1.60
                                                  
 Argentina peso (parallel)        16.13    -0.37    4.28
                                                  
 
 (Reporting by Bruno Federowski; Editing by Andrea Ricci)
  

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