April 26, 2018 / 5:59 PM / 3 months ago

EMERGING MARKETS-LatAm currencies rangebound as U.S. yields steady

    By Bruno Federowski
    BRASILIA, April 26 (Reuters) - Latin American currencies
were rangebound on Thursday as U.S. bond yields steadied, while
a heavy batch of corporate updates kept stocks volatile.
    Emerging-market currencies plummeted in recent days as
concerns over a widening U.S. fiscal deficit and accelerating
inflation lifted U.S. Treasury yields, dampening demand for
high-risk assets.
    Yields on 10-year U.S. bonds slipped back below 3 percent on
Thursday as buyers emerged following a week-long sell-off,
soothing angst among emerging-market investors.
    But caution remained as investors feared newfound strength
in the U.S. dollar may be here to stay.
    The Mexican and Chilean pesos were both
nearly flat, while the Brazilian real extended a recent
stretch of underperformance by weakening 0.4 percent. Concerns
over elections in Brazil have weighed on its currency in recent
weeks.
    The benchmark Bovespa stock index, however, was up 1
percent after a heavy batch of corporate earnings.
    Shares of shopping mall operator Multiplan Empreendimentos
Imobiliário SA were among the biggest gainers after
it reported an 81 percent increase in first-quarter net profit.
    Miner Vale SA, lender Banco Bradesco SA
, toll-road operator Ecorodovias Infraestrutura e
Logística SA, wood pulp producer Klabin SA
and college operator Estácio Participações SA also
reacted to recently-published quarterly earnings.
    
    Key Latin American stock indexes and currencies at 1720 GMT:
 Stock indexes                     Latest       Daily  YTD pct
                                                  pct   change
                                               change  
 MSCI Emerging Markets              1,143.83     0.31    -1.57
 MSCI LatAm                         2,974.95      1.2     3.94
 Brazil Bovespa                    85,878.43     0.98    12.40
 Mexico IPC                        48,273.47     0.45    -2.19
 Chile IPSA                         5,668.34     0.06     1.86
 Chile IGPA                        28,492.35    -0.01     1.83
 Argentina MerVal                  29,491.94    -1.52    -1.91
 Colombia IGBC                     12,271.62    -0.37     7.92
                                                              
 Currencies                           Latest    Daily  YTD pct
                                                  pct   change
                                               change  
 Brazil real                          3.4984    -0.41    -5.29
 Mexico peso                         18.8500     0.00     4.50
 Chile peso                            602.8     0.20     1.97
 Colombia peso                      2,814.55    -0.05     5.95
 Peru sol                              3.236    -0.03     0.03
 Argentina peso (interbank)          20.5150    -1.24    -9.33
                                                       
 Argentina peso (parallel)             20.61    -0.24    -6.70
                                                       
 
 (Reporting by Bruno Federowski)
  
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