EMERGING MARKETS-Latam currencies rise, Brazilian real up for sixth day

  • 6/2/2021
  • 00:00
  • 8
  • 0
  • 0
news-picture

* Crude prices lift Colombian peso * Mexican stocks stay at near 3.5 year high * Brazil"s Marfrig jumps on moving closer to BRF offer (Adds comments, bullets, details, updates prices throughout) By Susan Mathew and Shreyashi Sanyal June 2 (Reuters) - Rising oil prices lifted crude exporter Colombia"s peso to a five-week high on Wednesday, while Brazil"s real extended gains to a sixth session and stocks hit record highs on economic growth prospects. The real was up 1.4% and the Bovespa stock index extended gains to a sixth straight session and hit an all-time high of 128,620.25. The real had rallied 1.3% on Tuesday when data showing faster-than-expected growth in the first quarter saw Goldman Sachs, BNP Paribas and Citi raise their 2021 growth forecasts above 5%. "Most believe that the recent revisions to growth and inflation (in Brazil), and the better fiscal number will overshadow incipient political stories," strategists at Citi wrote in a client note. "This environment remains supportive to have some risk exposure to Brazil." But the drought in Brazil is affecting inflation as it affects food prices, central bank head Roberto Campos Neto said on Wednesday, adding that climate change has been influencing central bank mandates and monetary policy. Meanwhile, industrial production in Brazil fell in April for a third consecutive month, figures showed, a surprise drop showing a deeper than expected impact of the COVID-19 pandemic. Colombia"s peso rose 0.5% as oil rose, supported by an OPEC+ decision to stick to its plan to restore supply to the market gradually and by the slow pace of nuclear talks between Iran and the United States. In the world"s second-largest copper producer Peru, socialist presidential candidate Pedro Castillo is taking aim at copper mining firms" coveted tax stability agreements that freeze tariffs, accusing mining firms of plundering Peru"s wealth. Mexico"s peso rose 0.4%. Mexican President Andres Manuel Lopez Obrador"s leftist National Regeneration Movement (MORENA) and its allies should comfortably defend their majority in the lower house of Congress in mid-term elections on June 6, an opinion poll showed on Wednesday. A super majority by the ruling party would make it easier for it to pass less market-friendly reforms. Marfrig Global Foods jumped 3.4% as a source told Reuters the Brazilian beef producer is increasing its stake in food processor BRF SA to up to 30%, putting the buyer close to the threshold where it would have to make a public tender for all the company"s outstanding shares. Mexico"s Ipc index stayed at highs last seen in January 2018, while Colombia"s COLCAP rose half a percent. Key Latin American stock indexes and currencies at 1912 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1389.75 -0.08 MSCI LatAm 2654.86 1.52 Brazil Bovespa 129459.86 0.93 Mexico IPC 50814.94 0.18 Chile IPSA 4370.87 -0.57 Argentina MerVal 62416.59 2.162 Colombia COLCAP 1235.61 1.02 Currencies Latest Daily % change Brazil real 5.0869 1.37 Mexico peso 19.9009 0.32 Chile peso 718.2 1.35 Colombia peso 3651.25 0.35 Peru sol 3.8198 1.10 Argentina peso (interbank) 94.7700 -0.03 Argentina peso (parallel) 153 1.31 (Reporting by Susan Mathew and Shreyashi Sanyal in Bengaluru Editing by David Holmes and Nick Zieminski) Our Standards: The Thomson Reuters Trust Principles.

مشاركة :