July 26, 2018 / 4:00 PM / in 5 months

EMERGING MARKETS-Brazil stocks seesaw after flurry of corporate earnings

    By Bruno Federowski
    BRASILIA, July 26 (Reuters) - Brazilian stocks seesawed on
Thursday in the wake of a heavy batch of corporate earnings
reports from blue-chips such as miner Vale SA, brewer AmBev SA
and lender Banco Bradesco SA.
    The benchmark Bovespa stock index was near flat, in
line with muted moves by MSCI's index tracking stocks across
Latin America.
    Shares in Vale SA jumped 2 percent after the
world's largest iron ore producer reported higher second-quarter
operating profit, helped by increased output.
    Although the miner's net income undershot analysts'
expectations, mostly due to a currency hit, it also unveiled
plans to buy back $1 billion worth of common stock and pay out a
dividend of $2.054 billion in September.
    Stocks in AmBev, the Latin American unit of
brewing giant Anheuser Busch Inbev NV, also rose
sharply as the World Cup boosted second-quarter beer sales.

    Banco Bradesco SA shares fell sharply despite
stronger-than-expected second-quarter profits, with analysts
citing growing expenses.
    "The corporate news flow is setting the tone today and there
are both positive and negative reports around many high-profile
companies. It's only natural that the market as a whole behaves
erratically," a Rio de Janeiro-based portfolio manager said.
    Currency markets in Latin America also showed no unifying
trend, with investors avoiding making big bets as concerns over
global trade tensions fueled caution. The Brazilian real
weakened 0.6 percent, while the Mexican peso was up 0.2
percent.
    Riskier assets have suffered in recent months due to
escalating U.S. protectionism. But U.S. President Donald Trump
agreed on Wednesday to refrain from imposing car tariffs while
the two sides launch negotiations to cut other trade barriers,
easing the threat of a transatlantic trade war.
    
    Key Latin American stock indexes and currencies at 1520 GMT:
 Stock indexes                             daily %    YTD %
                                 Latest     change   change
 MSCI Emerging Markets           1090.70      0.17    -6.01
                                                    
 MSCI LatAm                      2733.90      0.08    -3.41
                                                    
 Brazil Bovespa                 80261.83      0.05     5.05
                                                    
 Mexico IPC                     49806.14      0.41     0.92
                                                    
 Chile IPSA                      5468.97       0.2    -1.72
                                                    
 Chile IGPA                     27498.56       0.2    -1.72
                                                    
 Argentina MerVal               29211.68     -0.52    -2.84
                                                    
 Colombia IGBC                  12153.42      0.38     6.88
                                                    
                                                           
 Currencies                                daily %    YTD %
                                            change   change
                                  Latest            
 Brazil real                      3.7239     -0.62   -11.03
                                                    
 Mexico peso                     18.6300      0.16     5.74
                                                    
 Chile peso                       648.73     -0.53    -5.25
                                                    
 Colombia peso                    2882.7      0.05     3.44
 Peru sol                          3.274     -0.03    -1.13
                                                    
 Argentina peso (interbank)      27.4000      0.00   -32.12
                                                    
 Argentina peso (parallel)         28.55      0.18   -32.64
                                                    
 
 (Reporting by Bruno Federowski; Editing by Dan Grebler)
  
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