February 27, 2018 / 9:52 PM / a year ago

EMERGING MARKETS-Latin America stocks, currencies fall broadly on Fed remarks

 (Adds analyst comment)
    By Miguel Gutierrez
    MEXICO CITY, Feb 27 (Reuters) - Equities and currencies fell
across Latin America on Tuesday after new Federal Reserve
Chairman Jerome Powell said his personal outlook for the U.S.
economy had strengthened since December.
    In remarks to the U.S. House of Representatives Financial
Services Committee, newly appointed Powell added that recent
data had increased his confidence that U.S. inflation will rise,
fueling bets that the Fed could hike interest rates four times
this year and sending the dollar higher against most major
    Higher U.S. interest rates cap sap demand for riskier
assets, such as emerging market currencies and stocks. 
    In Latin America, all major currencies fell against the
dollar, and all major equities market sank along with Wall
Street. Mexico, which is currently undergoing a sensitive round
of North American Free Trade Agreement renegotiations, led
    "The peso could face additional pressures ... especially if
there are no advances in the seventh round of NAFTA talks,"
Banco Base wrote in a report. 
    Mexico's benchmark IPC equities index fell about 1
percent while the Mexican peso shed about 0.8 percent
against the dollar. 
    Elsewhere in Latin America, Brazil's benchmark Bovespa index
 and Argentina's Merval fell.
    Weak quarterly results in Mexico have also added pressure on
    Among the biggest losers on the IPC was Gentera SAB de CV
, which specializes in credit products for
low-income consumers, as the company missed fourth-quarter
profit estimates due in part to higher-than-expected costs.
    Its shares fell 3.5 percent, posting their biggest intraday
loss since November.
Key Latin American stock indexes and currencies at 2053 GMT:
 Stock indexes                           daily  YTD %
                                             %  chang
                              Latest     chang      e
 MSCI Emerging Markets          1210.05   -0.9   5.41
 MSCI LatAm                     3121.92  -1.24  11.77
 Brazil Bovespa                86963.67  -0.79  13.82
 Mexico IPC                    47957.37  -1.04  -2.83
 Chile IPSA                     5642.04  -0.49   1.39
 Chile IGPA                    28312.64  -0.44   1.19
 Argentina MerVal              32589.01     -1   8.39
 Colombia IGBC                 11742.61  -0.86   3.27
 Venezuela IBC                  4478.55  -8.82  254.5
 Currencies                              daily  YTD %
                                             %  chang
                                 Latest  chang      e
 Brazil real                     3.2503  -0.09   1.94
 Mexico peso                    18.8355  -0.78   4.58
 Chile peso                       592.1  -0.79   3.81
 Colombia peso                     2858  -0.66   4.34
 Peru sol                         3.252  -0.12  -0.46
 Argentina peso (interbank)     20.2200  -0.15  -8.01
 Argentina peso (parallel)        20.23   0.69  -4.94
 (Additional reporting by Gram Slattery in Sao Paulo
Editing by Diane Craft and Alistair Bell)
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