EMERGING MARKETS-Latam currencies rebound; Petrobras supports Bovespa

Wed Aug 6, 2014 1:16pm EDT

SAO PAULO, Aug 6 (Reuters) - Brazil's benchmark stock index
rose on Wednesday, bolstered by shares of oil producer Petrobras
as investors placed bets on the outcome of an electoral poll due
to be released later this week.
    The broader MSCI Latin American stock index 
rose for the third session in four, while most of the region's
currencies retraced some of Tuesday's losses.
    Brazil's Bovespa stock index nearly erased the
previous session's loss, led by a more than 3.5 percent gain in
shares of state-run oil firm Petroleo Brasileiro SA.
    Investors have their eyes on the next major electoral poll,
expected after the market close on Thursday, as the company's
shares tend to swing on the outlook for October's presidential
race. Many investors are convinced that a defeat for incumbent
President Dilma Rousseff would lead to more favorable government
policies toward the company and its minority shareholders.
    The Bovespa was pressured to the downside by shares of
telecommunications firm Grupo Oi, which reported a
second-quarter net loss earlier on Wednesday.
    In currency markets, Chile's peso extended the
previous session's losses, falling to its weakest level in over
five years. The peso has been hit in recent sessions by lower
prices for copper, the country's main export, as well as
a worse than expected domestic economic activity reading.
    Other currencies in the region rebounded slightly from the
previous session's losses, including the Mexican peso,
which touched its weakest level in over four months on Tuesday.
    Brazil's real also clawed higher, trading at 2.275
against the dollar after losing over 1 percent in the previous
session.
    "The dollar gained a lot in recent days (against the real),
it would be hard to see much more room to gain today," said
Jaime Ferreira, head of currencies at Sao Paulo's Intercam.
     Uncertainty over how quickly the U.S. economy is growing
will probably remain the main driver of Latin American currency
markets in the coming months, a Reuters poll showed on
Wednesday. 
    A separate Reuters poll also suggested the risk of another
selloff in emerging market currencies within the next year
remains high. 
    
    Key Latin American stock indexes and currencies at 1647 GMT:
    
 Stock indexes                Latest         Daily   YTD pct
                                               pct    change
                                            change  
 MSCI Emerging Markets           1,057.4     -0.54      6.03
                                                    
 MSCI LatAm                     3,433.85      0.28      6.98
 Brazil Bovespa                56,566.76      0.65      9.82
 Mexico IPC                    44,463.52     -0.04      4.06
 Chile IPSA                     3,934.61     -0.15      6.36
 Chile IGPA                    19,175.97     -0.13      5.21
 Argentina MerVal              8,253.609      2.35     53.10
 Colombia IGBC                 14,255.69     -0.05      9.06
 Peru IGRA                     16,888.42       0.6      7.20
 Venezuela IBC                  2,185.43      0.13    -20.14
                                                            
 Currencies                                  Daily     YTD  
                                               pct       pct
                                  Latest    change    change
 Brazil real                      2.2744      0.35      3.63
 Mexico peso                     13.2492      0.35     -1.65
 Chile peso                          577     -0.03     -8.82
 Colombia peso                  1,885.49      0.40      2.47
 Peru sol                           2.81      0.11     -0.60
 Argentina peso (interbank)       8.2675      0.00    -21.47
                                                    
 Argentina peso (parallel)         12.77      0.00    -21.69
                                                    
 
 (Reporting by Bruno Federowski; Writing by Asher Levine,
editing by G Crosse)
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