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EMERGING MARKETS-LatAm currencies steady after U.S. inflation data
September 14, 2017 / 6:42 PM / 6 days ago

EMERGING MARKETS-LatAm currencies steady after U.S. inflation data

    By Bruno Federowski
    SAO PAULO, Sept 14 (Reuters) - Latin American currencies
held steady on Thursday an upswing in U.S. consumer prices only
confirmed trader bets on quickening inflation.
    A jump in the cost of gasoline and rental accommodation
drove a spike in U.S. consumer prices in August, another sign of
firming inflation that could allow the Federal Reserve to
increase interest rates once more this year.
    But traders said the report did not offer much new
information, with many already expecting a strong reading
following the previous day's U.S. producer prices data.

    "All in all, there were no big surprises and the market is
reacting accordingly," trader José Ranieri at BGC Liquidez said.
    A string of mixed economic figures has raised doubt over the
Fed's rate-hiking plans in recent months, fostering demand for
high-yielding emerging market currencies.
    That has helped drive the Brazilian real to six-month
highs, while the Mexican peso edged nearer to its
highest levels since 2016.
    Also on Thursday, Brazil's benchmark Bovespa stock index
 slipped 0.2 percent, dragged down by shares of miners
and steelmakers in the wake of a decline in China-listed iron
ore futures.
    Shares of meatpacker JBS SA extended their
advance for a second day as traders hoped that Chief Executive
Wesley Batista, who is at the center of a graft scandal, will be
replaced.
    Reuters reported that the JBS board will delay discussing a
replacement for Batista while it awaits a ruling on a motion to
release him from jail on charges of insider trading.


    Key Latin American stock indexes and currencies at 1810 GMT:
 Stock indexes                 Latest     Daily   YTD pct
                                           pct    change
                                         change   
 MSCI Emerging Markets         1,099.97     0.05    27.51
                                                  
 MSCI LatAm                    2,963.73     0.24    26.32
 Brazil Bovespa               74,659.27    -0.17    23.96
 Mexico S&P/BVM IPC           50,183.44     0.04     9.95
 Chile IPSA                    5,156.83    -0.12    24.22
 Chile IGPA                   25,766.44    -0.15    24.27
 Argentina MerVal             23,750.97    -0.36    40.39
 Colombia IGBC                11,131.82    -0.41     9.91
                                                         
 Currencies                    Latest     Daily   YTD pct
                                           pct    change
                                         change   
 Brazil real                     3.1279     0.30     3.88
 Mexico peso                    17.7005     0.27    17.19
 Chile peso                       623.4     0.38     7.59
 Colombia peso                    2,899     0.42     3.54
 Peru sol                         3.238     0.00     5.44
 Argentina peso (interbank)     16.9800     0.53    -6.51
                                                  
 Argentina peso (parallel)        17.82     0.17    -5.61
                                                  
 
 (Reporting by Bruno Federowski, editing by G Crosse)
  

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