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EMERGING MARKETS-Latam stocks and currencies down on China data, Fed minutes
October 13, 2016 / 4:46 PM / a year ago

EMERGING MARKETS-Latam stocks and currencies down on China data, Fed minutes

(Adds details on Brazil stocks)
    By Bruno Federowski
    SAO PAULO, Oct 13 (Reuters) - Latin American stocks and
currencies fell on Thursday as weak Chinese trade data and bets
on a December U.S. interest rate increase depressed the appetite
for risky assets.
    China's September exports fell 10 percent from a year
earlier, a far bigger decline than expected, while imports
posted a surprise drop. 
    Persistent concerns over economic weakness in the world's
biggest commodities consumer have weighed on demand for assets
in regions exporting raw materials, such as Latin America.
    The Chilean peso  weakened 0.7 percent,
tracking a decline in the price of copper, the country's main
export. The Mexican peso retreated 0.6 percent.
    Brazil's currency and stocks fell less than
regional peers after a vote in Congress reinforced expectations
that President Michel Temer will be able to limit public
spending and curb the country's debt load. 
    Shares of miner Vale SA and steelmakers Usinas
Siderúrgicas de Minas Gerais SA and Cia Siderúrgica
Nacional SA were among the biggest decliners,
tracking commodities prices lower.
    But losses were limited by a rise in shares of
state-controlled oil company Petróleo Brasileiro SA 
 following a bigger-than-expected drop in U.S.
inventories of refined products. 
    Concerns that a possible U.S. rate hike this year could lure
capital away from emerging markets remained strong following the
release of the Federal Reserve policy minutes on Wednesday, when
Brazilian markets were closed for a local holiday.
    According to the document, several rate-setting policymakers
at the Fed judged a rate hike would be warranted "relatively
soon" if the U.S. economy continued to strengthen. 
    Earlier on Thursday, the Turkish lira slid to a record low,
the South African rand lost over one percent and emerging
equities tumbled to three-week lows on the Chinese trade data
and Fed minutes. 
    Key Latin American stock indexes and currencies at 1615:
 Stock indexes                               daily %    YTD %
                                              change   change
 MSCI Emerging Markets               891.23    -1.28    13.68
 MSCI LatAm                         2467.63    -0.61    35.69
 Brazil Bovespa                    60860.55    -0.26    40.39
 Mexico IPC                        47574.44    -0.71    10.70
 Chile IPSA                         4100.37    -0.29    11.42
 Chile IGPA                        20544.20    -0.27    13.18
 Argentina MerVal                  17146.33    -0.35    46.86
 Colombia IGBC                      9972.17    -0.36    16.67
 Venezuela IBC                     13463.18    -0.19    -7.71
 Currencies                                  daily %    YTD %
                                              change   change
 Brazil real                         3.1950    -0.03    23.54
 Mexico peso                        19.0265    -0.59    -9.44
 Chile peso                           671.2    -0.66     5.74
 Colombia peso                      2935.34    -1.08     7.97
 Peru sol                             3.409    -0.26     0.15
 Argentina peso (interbank)         15.1400    -0.40   -14.25
 Argentina peso (parallel)             15.5     0.19    -7.94
 (Reporting by Bruno Federowski; Editing by Nick Zieminski and
Meredith Mazzilli)

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