EMERGING MARKETS-Latam stocks fall on commodities plunge, Fed prospects

Tue Jul 30, 2013 5:30pm EDT

* Vale, Usiminas, Petrobras, lead Bovespa's fall
    * Fed meeting to yield insight into policy plans on
    * Brazil's Bovespa falls 1.32 pct, Mexico's IPC down 0.26

    MEXICO CITY, July 30 (Reuters) - Latin American stocks fell
on Tuesday, one day ahead of a monetary policy statement by the
U.S. Federal Reserve which could provide hints as to when it
will begin to taper its massive $85 billion a month bond-buying
    * Brazil's Bovespa and Chile's IPSA indexes
declined sharply, led by losses in commodity-related shares. 
    * Mexico's IPC index also fell slightly ahead of the
Fed announcement. A selloff in shares of telecommunications
giant America Movil, which recently ended its
agreement with Dutch telco KPN to keep its holding in
the European company below 30 percent, also weighed.
    * The U.S. central bank's monetary stimulus program has
pushed investors toward riskier assets such as emerging market
stocks, and the prospect of less stimulus has fueled selling in
Latin American markets.
    * Fueled by a commodity selloff, Brazil's benchmark Bovespa
stock index fell 1.32 percent to close at 48,561.78 points.
    * A 1.87 percent decline in shares of miner Vale SA
 led losses, while a 4.45 percent drop in steelmaker
Usiminas Siderugicas de Mina Gerais SA and a 1.32
percent fall in state-owned oil producer Petrobras PR 
also weighed.
    * Mexico's IPC index retreated further from a
three-week high reached on Friday, falling 0.26 percent to close
at 40,236.55 points. 
    * Shares in America Movil, controlled by billionaire Carlos
Slim, fell 0.9 percent, contributing most to the index's
    * Chile's IPSA index fell 1.46 percent to close at
3,748.36 points, led by a 16.84 percent plummet in shares of
potash producer Sociedad Quimica y Minera de Chile SA
 , tracking a decline in global potash prices.
    * The Santiago Stock Exchange halted trading in SQM after
Russia's Uralkali moved to dismantle the world's
largest potash cartel. 
    Latin America's key stock indexes at 2040 GMT:
 Stock indexes                 Latest       Daily   YTD pct
                                              pct    change
 MSCI Latam                    3,156.30     -1.04    -16.89
 Brazil Bovespa               48,561.78     -1.32    -20.33
 Mexico IPC                   40,236.55     -0.26     -7.94
 Chile IPSA                    3,748.36     -1.46    -12.86
 Chile IGPA                   18,518.15     -1.98    -12.11
 Argentina MerVal              3,336.74      -1.4     16.90
 Colombia IGBC                13,436.99      0.15     -8.69
 Peru IGRA                    15,122.77     -1.23    -26.69
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A tourist takes a plunge as she swims at Ngapali Beach, a popular tourist site, in the Thandwe township of the Rakhine state, October 6, 2013. Picture taken October 6, 2013. REUTERS/Soe Zeya Tun (MYANMAR - Tags: SOCIETY) - RTR3FOI0

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