December 21, 2017 / 6:02 PM / 10 months ago

EMERGING MARKETS-Brazil stocks rise on deal talk, credit chatter

    SAO PAULO, Dec 21 (Reuters) - Brazil's blue-chip Bovespa
index led gains across Latin American equities markets
on Thursday, jumping 2.3 percent after the Wall Street Journal
reported that Boeing Co had entered into potential
takeover talks with Brazilian planemaker Embraer SA.
    According to the Journal, Boeing and Embraer have been
discussing a deal in which Boeing would pay a relatively large
premium on Embraer's shares, but the parties are waiting to see
if Brazil's government would approve such a deal.
    Brazil-listed shares in Embraer shot up 21.3 percent after a
brief halt in trading, and were trading at 20 reais ($6.06) by
mid-afternoon.
    Brazilian equities also rose on comments by Finance Minister
Henrique Meirelles that temporarily warded off fears of a credit
downgrade.
    Speculation has swirled that major credit ratings agencies
like S&P and Fitch, both of which give Brazil a BB, will
downgrade Brazil's debt as the nation's legislators struggle to
pass a pension legislation overhaul seen as key to shoring up
the country's budget deficit.
    However, Meirelles said he had not discussed a credit
downgrade in recent meetings with S&P, Fitch and Moody's, adding
that he had received no information suggesting such a move was
imminent.
    The Bovespa had popped 2.34 percent by mid-afternoon, with
most of those gains coming after Meirelles' comments and the
Embraer news.
    The stock index was also aided by the performance of
state-owned oil major Petroleo Brasileiro SA, known
as Petrobras.
    Shares in Petrobras shot up over 3 percent to 15.71 reais
after the company unveiled an investment plan projecting $74.5
billion of capital expenditure from 2018 to 2022, slightly above
projected investment for the 2017 to 2021 period.
    In a note to investors, Itau BBA analyst André S. Hachem
called the company's plan to start up eight new platforms during
that time "ambitious."
 ($1 = 3.30 reais)
     
Key Latin American stock indexes and currencies at 1721 GMT:
    
 Stock indexes                             daily %     YTD %
                               Latest       change    change
 MSCI Emerging Markets           1135,58      0,24     31,38
                                                    
 MSCI LatAm                      2798,65      1,01     18,37
                                                    
 Brazil Bovespa                 75083,47      2,34     24,67
                                                    
 Mexico S&P/BVM IPC             48682,45       0,6      6,66
                                                    
 Chile IPSA                      5480,63     -0,87     32,02
                                                    
 Chile IGPA                     27575,04     -0,79     32,99
                                                    
 Argentina MerVal               28464,20      1,41     68,25
                                                    
 Colombia IGBC                  11191,50      0,26     10,50
                                                    
 Venezuela IBC                   1280,33     -0,48    -95,96
                                                    
                                                            
 Currencies                                daily %     YTD %
                                            change    change
                                  Latest            
 Brazil real                      3,2995     -0,18     -1,52
                                                    
 Mexico peso                     19,4170     -1,07      6,83
                                                    
 Chile peso                        620,5     -0,02      8,09
                                                    
 Colombia peso                   2964,06     -0,17      1,26
 Peru sol                          3,257      0,31      4,82
                                                    
 Argentina peso (interbank)      17,9200     -0,86    -11,41
                                                    
 Argentina peso (parallel)            18      0,33     -6,56
                                                    
 
 (Reporting by Gram Slattery; Editing by James Dalgleish)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below