December 11, 2013 / 5:20 PM / 4 years ago

EMERGING MARKETS-Brazil stocks fall on investor caution on Fed

* Brazil Bovespa falls 1.19 pct, Mexico IPC flat

    SAO PAULO, Dec 11 (Reuters) - Brazilian stocks sunk their
most in over a week on Wednesday as investor caution over a
potential reduction in monetary stimulus from the U.S. Federal
Reserve led to a fall in the most heavily-weighted shares.
    Mexico's IPC index was little changed, while Chile's
bourse edged lower.
     The U.S. Congress announced a provisional budget deal on
Tuesday, which some investors expect will strengthen a view that
the Fed may soon scale back its massive bond-buying program. The
Fed's stimulus program has helped support global demand for
riskier assets such as Latin American equities. 
    The Fed's next policy-setting meeting is scheduled to take
place on Dec. 17 and 18. 
    Brazil's benchmark Bovespa stock index lost 1.19
percent to 50,384.52.
    State-run oil company Petroleo Brasileiro SA,
known as Petrobras, fell 1.4 percent, contributing most to the
index's decline, while Itaú Unibanco Holding SA,
Brazil's largest non-government bank, fell 1.8 percent. Both
companies tend to attract a large share of foreign investors
seeking exposure to local equities. 
    "It seems that there is little interest on the part of
investors to take significant risks," said Gustavo Mendonca, an
economist with Saga Capital in Rio de Janeiro.
    Mexico's IPC index was nearly unchanged from
Tuesday's close, hovering near 42,470 points.
    Shares of telecommunications firm America Movil,
controlled by billionaire Carlos Slim, rose 0.8 percent, while
mining firm Grupo Mexico lost 1.5 percent.
    Chile's IPSA index fell slightly as shares of Banco
Santander Chile dropped 1.1 percent. 
    
    Latin America's key stock indexes at 1705 GMT:
 Stock indexes                        daily %     YTD %
                       Latest         change      change
 MSCI LatAm            3,195.75       -1.36       -14.69
                                                  
 Brazil Bovespa        50,384.52      -1.19       -17.34
                                                  
 Mexico IPC            42,466.94      -0.05       -2.83
                                                  
 Chile IPSA            3,703.11       -0.14       -13.91
                                                  
 Chile IGPA            18,265.12      -0.08       -13.31
                                                  
 Argentina MerVal      5,216.35       -0.15       82.75
                                                  
 Colombia IGBC         13,165.12      0.46        -10.54
                                                  
 Peru IGRA             15,012.81      -0.21       -27.23
                                                  
 Venezuela IBC         2,652,442.39   1.38        462.63

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