September 14, 2017 / 8:17 PM / 10 months ago

EMERGING MARKETS-LatAm currencies steady after U.S. inflation rises in Aug.

 (Updates prices)
    By Bruno Federowski
    SAO PAULO, Sept 14 (Reuters) - Latin American currencies
held steady on Thursday after an upswing in U.S. consumer prices
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 Wednesday'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.
    The Brazilian real climbed 0.7 percent on Thursday,
while the Mexican peso was up 0.44 percent.
    Also on Thursday, Brazil's benchmark Bovespa stock index
 slipped 0.02 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 advanced for a second
day, rising 4.6 percent, as traders hoped that Chief Executive
Wesley Batista, who is at the center of a graft scandal, will be
    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 1955 GMT:
 Stock indexes             Latest        Daily pct    YTD pct
                                            change     change
 MSCI Emerging Markets         1,100.31       0.08      27.51
 MSCI LatAm                    2,973.50       0.57      26.32
 Brazil Bovespa               74,773.20      -0.02      24.15
 Mexico IPC                   50,096.85      -0.14       9.76
 Chile IPSA                    5,160.46      -0.05      24.31
 Chile IGPA                   25,784.98      -0.07      24.36
 Argentina MerVal             23,715.89      -0.51      40.18
 Colombia IGBC                11,155.30       -0.2      10.14
 Venezuela IBC               386,035.38       9.73    1117.58
 Currencies                      Latest  Daily pct    YTD pct
                                            change     change
 Brazil real                     3.1155       0.70       4.29
 Mexico peso                    17.6700       0.44      17.40
 Chile peso                       623.1       0.43       7.64
 Colombia peso                  2,896.1       0.52       3.64
 Peru sol                         3.238       0.00       5.44
 Argentina peso                 16.9800       0.53      -6.51
 Argentina peso                   17.81       0.22      -5.56
 (Reporting by Bruno Federowski; Editing by Leslie Adler)
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