EMERGING MARKETS-Brazil stocks choppy as Petrobras gains offset PDG losses
* Market holiday on Tuesday fuels volatility * Brazil central bank to announce interest rate decision Wednesday * Brazil Bovespa falls 0.13 pct, Mexico IPC down 0.18 pct By Lucas Iberico-Lozada SAO PAULO, July 8(Reuters) - Brazilian stocks swung widely on Monday as gains from state-run oil producer Petrobras offset losses from homebuilders, banks and commodities firms. Mexico's IPC index edged lower following its worst loss in over two weeks on Friday, while Chile's bourse gained for the second session in three. Brazil's benchmark Bovespa stock index was down 0.13 percent at 45,151.35 after opening lower. Brazil's stock market will be closed on Tuesday for a local holiday. "Market volatility is expected this week, considering the holiday tomorrow, and many important events are on the agenda for this week," said analyst Rudimar Jose Joner Filho of Banrisul Corretora in Porto Alegre, Brazil. "The market is nervous." Brazil's central bank will announce its latest interest rate decision on Wednesday after the market close. All 57 economists surveyed in a Reuters poll expect the bank to lift its benchmark Selic rate on Wednesday evening, even at the risk of cutting off a fragile economic recovery. Shares of Petroleo Brasileiro SA, known as Petrobras, rebounded slightly, rising 0.7 percent as bargain-hunters picked up cheap shares after the stock posted its biggest one-day loss in over a year on Friday due to worries over a decline in global liquidity. Shares of homebuilder PDG Realty SA limited gains in the Bovespa, falling 3.8 percent and hitting their lowest price on record. Citigroup analysts led by Paula Mello cut their recommendation on PDG shares to "sell" from "neutral" on Monday, citing a weaker macroeconomic outlook for Brazil and a potential increase in sales cancellations. Shares of airline Gol Linhas Aereas Inteligentes SA rose as much as 4.4 percent to 6.41 reais, their biggest intraday advance since June 25. Standard & Poor's removed Gol from "credit watch," meaning the company's debt ratings are unlikely to be lowered in the short- and medium-term. Mexico's IPC index fell 0.18 percent to 40,551.64 after trading in positive territory earlier in the session. Telecommunications firm America Movil, controlled by billionaire Carlos Slim, fell 1.8 percent, offsetting a 2 percent gain in shares of conglomerate Alfa. Chile's IPSA index looked to break technical resistance at just below 3,900 points as it gained 0.24 percent to 3,841.08. Banco Santander Chile rose 1 percent, contributing most to the index's gains, while LATAM Airlines Group rose 0.4 percent. Latin America's key stock indexes at 1451 GMT: Stock indexes daily % YTD % Latest change change MSCI LatAm 3,067.76 0.58 -19.69 Brazil Bovespa 45,151.35 -0.13 -25.92 Mexico IPC 40,551.64 -0.18 -7.22 Chile IPSA 3,841.08 0.24 -10.70 Chile IGPA 19,047.71 0.15 -9.60 Argentina MerVal 3,114.06 1.64 9.10 Colombia IGBC 12,655.28 0.21 -14.00 Peru IGRA 15,253.10 0.47 -26.06 Venezuela IBC 0.00 0 -100.00
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