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EMERGING MARKETS-LatAm currencies up after Trump fires FBI chief
May 10, 2017 / 4:15 PM / 7 months ago

EMERGING MARKETS-LatAm currencies up after Trump fires FBI chief

    By Bruno Federowski
    SAO PAULO, May 10 (Reuters) - Latin American currencies
strengthened on Wednesday after U.S. President Donald Trump
unexpectedly fired FBI director James Comey, fueling
expectations of delays in the implementation of the government's
economic agenda.
    Trump has pledged to spend heavily on infrastructure and cut
taxes, fostering bets on additional inflationary pressures that
could force the Federal Reserve to increase interest rates
faster than expected. 
    A slower pace of rate hikes would bolster the allure of
emerging market assets, which offer higher yields than their
developed peers.
    The currencies of Brazil, Chile, Mexico
 and Colombia all strengthened about 1 percent,
also boosted by higher prices for basic products such as iron
ore, copper and oil.
    Crude futures rose as U.S. inventories posted their biggest
weekly decline this year and on hopes of a potential output cut
extension, lifting shares of Brazilian state-controlled oil
company Petróleo Brasileiro SA.
    Petrobras, as the company is known, proposed adding a Texas
refinery and a stake in an African oil exploration venture to a
list of assets that it has put up for sale by the end of next
    The stock added the most points to Brazil's benchmark
Bovespa stock index, which rose 1.4 percent. Shares of
Telefónica Brasil SA also ranked among the biggest
gainers after the telecommunications carrier posted a 13 percent
increase in recurring net income.
    Key Latin American stock indexes and currencies at 1605 GMT:
 Stock indexes                             daily %   YTD %
                                  Latest    change  change
 MSCI Emerging Markets             995.47     0.49   14.88
 MSCI LatAm                       2676.57      1.7   12.43
 Brazil Bovespa                  67265.95     1.49   11.69
 Mexico IPC                      49968.30     0.06    9.48
 Chile IPSA                       4826.23     0.39   16.26
 Chile IGPA                      24207.66     0.33   16.75
 Argentina MerVal                21468.99     1.55   26.90
 Colombia IGBC                   10490.78     0.12    3.58
 Venezuela IBC                   60525.53     1.94   90.90
 Currencies                                daily %   YTD %
                                            change  change
 Brazil real                       3.1543     0.93    3.01
 Mexico peso                      18.9735     1.04    9.33
 Chile peso                         671.8     1.00   -0.16
 Colombia peso                    2944.43     1.07    1.94
 Peru sol                           3.288     0.06    3.83
 Argentina peso (interbank)       15.5500    -0.16    2.09
 Argentina peso (parallel)          15.86     0.57    6.05
 (Reporting by Bruno Federowski; Editing by Tom Brown)

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