Agamoni Ghosh

European shares rise as short covering, earnings help temper tepid PMIs

18 Apr 2019

European shares ended higher on Thursday as short covering kicked in ahead of a long Easter weekend and strong quarterly results including those from Unilever and Nestle tempered data showing euro zone businesses unexpectedly slowed this month. | Video

EMERGING MARKETS-Latam currencies rise, Brazil stocks slide as pension vote delayed

18 Apr 2019

(Recasts, updates prices) By Agamoni Ghosh April 17 Brazilian stocks fell on Wednesday as a crucial vote related to pension reform was postponed to next week, while currencies in Latin America were mostly higher as the dollar softened. MSCI's index of Latin American stocks fell 0.8 percent, led by losses in Brazil's Bovespa which slipped to three-week lows, while volumes remained light as market participants awaited a long Easter weekend. Prospects of swifter passage of crucial pension reform in Brazil dimmed after a vote in the Constitution and Justice Commission (CCJ) to approve the content of the reform was postponed to next week. In addition, Brazil's Economy Minister Paulo Guedes said he believes the pension reform proposal will be voted on in Congress in another two to four months. Traders cited worries the government was struggling even with the preliminary steps toward the reform whose passage is seen as crucial to reining in a budget deficit and re-igniting economic growth. Financial stocks, typically sensitive to pension reform news, led losses on the Bovespa, while airline stocks were among the biggest drags after Morgan Stanley cut price targets on U.S.-listed shares of several carriers in the region. Colombia's IGBC index fell to a five-week low, dragged down by energy firm Ecopetrol SA, down 8 percent, after an oil spill in two rivers from a damaged pipeline, which is in the process of being contained. Mexican stocks rose over 1 percent with Banco Santander Mexico's shares emerging as one of the top gainers. Most currencies in the region rose against a softer dollar which slid after upbeat economic data from China eased some fears of a slowdown in its economy and bolstered risk appetite. Argentina's peso recovered from Tuesday's falls as the government announced new measures including a freeze on prices on public services in a bid to contain inflation ahead of upcoming elections in October. The bank said it would reinforce the "contractionary bias" of monetary policy, which includes freezing a non-intervention peso trading range until year-end. "Although such a measure is net positive for ARS, it is very unlikely to change ARS direction in the medium term," Morgan Stanley analysts said in a note, using ARS to refer to Argentina's peso. Both Colombia and Chile's pesos gained, while Brazil's real narrowly scraped into positive territory under pressure from pension reform uncertainties. Key Latin American stock indexes and currencies at 2100 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1,096.39 0.26 MSCI LatAm 2,745.75 -0.8 Brazil Bovespa 93,284.75 -1.11 Mexico IPC 45,525.29 1.15 Chile IPSA 5,275.43 0.27 Argentina MerVal 32,036.78 -0.78 Colombia IGBC 12,801.9 -1.19 Currencies Latest Daily % change Brazil real 0.25389 0.01 Mexico peso 0.053107 -0.02 Chile peso 661 0.24 Colombia peso 3155.5 0.17 Peru sol 3.297 -0.03 Argentina peso (interbank) 41.8 1.44 (Reporting by Agamoni Ghosh and Susan Mathew; Additional reporting by Maria Carolina Marcello; Editing by Chris Reese)

European shares hold on to eight-month highs on China data; Autos rally

17 Apr 2019

European shares ended higher on Wednesday led by a rally in auto stocks as better-than-expected sets of data from China assuaged investor concerns about the health of the world's second-largest economy.

EMERGING MARKETS-Latam stocks rise tracking global equities; FX weakens

17 Apr 2019

(Recasts, updates prices) By Agamoni Ghosh April 16 Latin American stocks rose on Tuesday in line with world stocks as positive data from China and Germany boosted investor sentiment, while currencies in the region slid against a firm dollar. MSCI's index of Latin American stocks rose 0.8 percent after three-straight sessions of losses with shares in Brazil leading gains. Volumes remained subdued on account of a shortened trading week for the Easter holidays. World stocks hit a more than six-month high on Friday as signs of stabilization in China's economy and positive data from Germany buoyed sentiment. Sao Paulo-traded stocks rose 1.5 percent with oil-firm Petrobras providing the biggest boost to the index. Brazil's energy minister said Tuesday there would be no change in the pricing policy of the state-owned oil firm after the company called off a diesel price hike last week following a call from the president to its chief executive. Shares of Vale SA registered their best day in over two-months after a Brazilian state court authorized the iron ore miner to resume operations at the Brucutu mine, its largest in Minas Gerais state. Petrochemical company Braskem SA slid after an appeals court in Alagoas state ruled the company's shareholders cannot approve its planned payment of 2.7 billion reais ($697 million) in dividends. Investors also watched progress related to Brazil's pension reform with leaders of the country's largest parties delaying an expected vote to start discussion in parliament on the subject to next week. "This short delay is a way for the centrist parties to make their voices heard, and may be a preview of the opposition to come when the bill is debated in the special committee," analysts at Citi Research said in a note. Mexican stocks rose 0.8 percent with Wal-Mart de Mexico (Walmex), the country's largest retail chain, among the biggest gainers, while the peso ended flat. Argentina's peso snapped a six-day winning streak after data showed consumer prices rose 4.7 percent in March, accelerating from the previous month as stubborn inflation pinched spending power. The rise marked the third consecutive month in which inflation has accelerated, taking the year-to-date rise to 11.8 percent. That is a worrying sign for the peso, which lost almost half its value against the dollar last year. Argentina's central bank said Tuesday it will freeze a non-intervention trading band for its currency until the end of the year. Chile's peso fell marginally tracking a dip in the price of copper, the country's top export, while stocks on the IPSA index rose for the first time in five sessions. Key Latin American stock indexes and currencies at 2100 GMT Stock indexes daily % Latest change MSCI Emerging Markets 1093.55 0.67 MSCI LatAm 2767.85 0.83 Brazil Bovespa 94333.31 1.34 Mexico IPC 45009.36 0.86 Chile IPSA 5261.00 0.55 Argentina MerVal 32290.18 1.72 Colombia IGBC 12956.04 0.29 Currencies daily % change Latest Brazil real 3.9031 -0.08 Mexico peso 18.8715 0.00 Chile peso 662.6 -0.05 Colombia peso 3160.98 0.00 Peru sol 3.296 -0.06 Argentina peso 42.3000 -1.56 (interbank) (Reporting by Agamoni Ghosh and Susan Mathew in Bengaluru; Editing by Tom Brown)

European shares at eight-month high boosted by financials; volatility fades

16 Apr 2019

European shares ended at an eight-month high on Tuesday, bolstered by banking and financial stocks, upbeat data from China and the improving economic mood in Germany.

EMERGING MARKETS-Latam currencies and stocks fall in quiet trade

16 Apr 2019

(Updates prices, adds market strategist's quote) By Agamoni Ghosh April 15 Lower oil prices dragged down currencies of Latin American oil exporters on Monday, while stocks edged lower in light trading in a holiday-shortened work week. MSCI's index of Latin American currencies fell for a third straight session, pulled down by currencies of net crude exporters in the region, with Mexico's peso coming off four-week highs. Stocks also slid with Colombia's IGBC index leading losses with energy firm Ecopetrol SA shedding over 1 percent. "Equities and currencies were trading light. It's going to be very quiet this week given the holiday overhang," said Christian Lawrence, Latam FX strategist at Rabobank. Most Latin American markets will be closed on Thursday and Friday for Holy Thursday and Good Friday, respectively. Mexican stocks slid 0.1 percent with chemicals producer Alpek SAB de CV weighing on the index, while investors continued to monitor news related to debt-laden oil firm Pemex. Mexican Finance Minister Carlos Urzua said on Saturday he did not expect rating agencies to further downgrade the state-owned energy company. Pemex, which owes $106 billion, is the world's most indebted oil company and is on the brink of being downgraded to below investment grade. Chile's peso fell 0.2 percent tracking a dip in the price of copper, the country's top export, while stocks on the IPSA index fell marginally. Sao Paulo's Bovespa rose a meager 0.2 percent helped by consumer stocks after having fallen almost 2 percent in the previous session. Shares of iron ore miner Vale, weighed heavily on the index after a report that its decision to halt production at 10 sites in Minas Gerais state following a deadly dam disaster has affected deliveries of iron ore pellets to clients. Ecorodovias landed at the bottom of the benchmark index after the federal police on Friday carried out search-and-seizure warrants at its indirect subsidiary Eco 101. Investors also monitored progress related to Brazil's proposed pension reform with House Speaker Rodrigo Maia saying he expects the committee in charge of analyzing the social security plan to approve the beginning of its discussion on Tuesday. The real climb for the first time in three sessions but gains were limited. "The path for the Brazilian real is going to be heavily dependent on the pension reform," said Lawrence of Rabobank. The pension reform is seen as the most important economic reform for Brazil and its mounting fiscal deficit, but investors worry that dilution of the original plan may not result in the savings promised by President Jair Bolsonaro. Data on Friday showed that Brazilian economic activity contracted in February by the most in nine months, adding to concerns about a sluggish start to the year for Latin America's largest economy. Key Latin American stock indexes and currencies at 2100 GMT Stock indexes daily % Latest change MSCI Emerging Markets 1086.22 -0.26 MSCI LatAm 2744.99 -0.57 Brazil Bovespa 93082.97 0.22 Mexico IPC 44625.78 -0.13 Chile IPSA 5232.32 -0.14 Argentina MerVal 31745.57 1.24 Colombia IGBC 12919.14 -1.61 Currencies daily % change Latest Brazil real 3.8682 -0.04 Mexico peso 18.8536 -0.55 Chile peso 662.3 -0.23 Colombia peso 3137.93 -0.79 Peru sol 3.294 0.09 Argentina peso (interbank) 41.6200 1.39 (Reporting by Agamoni Ghosh; Editing by Richard Chang)

European shares edge higher on trade optimism; U.S. bank earnings weigh

15 Apr 2019

European shares ended higher on Monday with telecom and retail stocks leading gains as Sino-U.S. trade optimism and strong Chinese economic data eased some worries over global growth - though lackluster earnings from big U.S. banks weighed.

EMERGING MARKETS-Latam stocks and currencies fall on global growth concerns

11 Apr 2019

* Bolsonaro government hits 100-day mark * Currencies of net crude exporters slide * B2W and Magazine Luiza slide on possible Netshoes takeover By Agamoni Ghosh April 11 Latin American stocks and currencies fell on Thursday as risk appetite shrunk after central banks in Europe and the United States acknowledged global growth concerns, while investors eyed progress related to Brazil's pension reform. MSCI's index of Latin American stocks and fell over 1 percent as investors piled onto safe-heaven assets in wake of global growth fears. The European Central Bank left borrowing costs unchanged on Wednesday and warned that threats to economic growth remained. Later, minutes from a March 19-20 Federal Reserve meeting acknowledged the global slowdown but suggest the U.S. economy could sail through. Sao Paulo-traded stocks dropped for a third-straight session weighed down by financial stocks as investors awaited further progress related to the pension reform on a day the government of President Jair Bolsonaro reaches its 100-day mark. Treasury Secretary Mansueto Almeida said on Wednesday that the expected savings of up to 700 billion reais ($183 billion) over the next decade from the much-hyped social security plan might be acceptable for investors, but not the government. The pension reform is seen as the most important economic reform for Brazil and its mounting fiscal deficit. Brazilian retailers B2W and Magazine Luiza slid about 1 percent each after confirming in filings they are considering the acquisition of online shoe retailer Netshoes Ltd. Fertilizantes Heringer rose over 1 percent after the fertilizer company proposed to repay unsecured creditors 20 percent of amounts owed them and to sell seven non-operating plants, as part of its restructuring plan. Currencies in the region slid against a firmer dollar with net crude exporters like Mexico's peso being hit by lower oil prices. Data showed on Thursday that industrial output in Latin America's second largest economy rose 0.3 percent in February from January but was 0.8 percent lower year-over-year. Chile's peso fell marginally tracking a dip in the price of copper, the country's top export, while stocks on the IPSA index slipped about half a percent. Key Latin American stock indexes and currencies at 1450 GMT MSCI Emerging Markets 1086.78 -0.85 MSCI LatAm 2806.26 -1.18 Brazil Bovespa 95016.12 -0.98 Mexico IPC 44415.52 -1.1 Chile IPSA 5256.05 -0.42 Argentina MerVal 31929.40 -0.7 Colombia IGBC 13179.65 -0.83 Currencies daily % change Latest Brazil real 3.8371 -0.36 Mexico peso 18.8565 -0.25 Chile peso 663.2 -0.21 Colombia peso 3108.35 -0.47 Peru sol 3.296 -0.06 Argentina peso 42.8200 0.49 (interbank) (Reporting by Agamoni Ghosh; editing by Diane Craft)

EMERGING MARKETS-Stocks slide on growth fears, trade tensions

11 Apr 2019

April 11 Emerging-market shares fell from eight-month highs on Thursday as risk appetite faded as trade tensions continued and the U.S. and European Union central banks reinforced worries about sluggish growth.

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