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EMERGING MARKETS-Mexican stocks and currency fall after Yellen economy comments
October 14, 2016 / 10:22 PM / a year ago

EMERGING MARKETS-Mexican stocks and currency fall after Yellen economy comments

By Bruno Federowski
    SAO PAULO, Oct 14 (Reuters) - Mexico's stock index and
currency fell on Friday after Federal Reserve Chair Janet Yellen
laid out deepening concerns at the Fed that U.S. economic
potential is slipping and may need aggressive steps to rebuild
    Yellen's comments, which were posed as questions that need
more research, rattled investors. 
    Mexico's IPC stock index fell 0.08 percent, while the
peso weakened 0.47 percent to 19.02 per U.S. dollar.
    Brazilian stocks rose more than 1 percent after
state-controlled oil company Petróleo Brasileiro SA announced a
fuel price cut and a new pricing policy.
    Petrobras said it will reassess prices on a monthly basis to
follow global markets more closely, without falling below
international prices, turning the page on years of politically
driven pricing that cost the company billions. 
    Though lower short-term fuel prices tend to hurt revenue,
increased transparency could help lure partners in refining
projects, BTG Pactual said in a sales note.    
    Demand for emerging market assets has been tepid in recent
days as expectations grow that the Federal Reserve will raise
interest rates in December.
    Key Latin American stock indexes at 2154 GMT:
 Stock indexes                                  daily %    YTD %
                                                 change   change
 MSCI Emerging Markets                  897.03     0.72    12.96
 MSCI LatAm                            2496.13     1.14    36.41
 Brazil Bovespa                       61767.22     1.06    42.49
 Mexico IPC                           47701.45    -0.08    10.99
 Chile IPSA                            4141.16     0.38    12.53
 Chile IGPA                           20746.20     0.43    14.29
 Argentina MerVal                     17414.89     1.04    49.16
 Colombia IGBC                         9946.92    -0.53    16.37
 Venezuela IBC                        13552.60     0.66    -7.10

 (Reporting by Bruno Federowski and Noe Torres; Editing by Phil
Berlowitz and Grant McCool)

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