Sept 18 (Reuters) - Latin American markets were on the back
foot on Wednesday led by losses in Brazilian assets with
investor attention focused on monetary policy decisions in the
United States and Brazil.
MSCI's index of Latin American stocks fell
0.3% on the back of losses in index heavyweights Brazil
and Mexico, while currencies in the region were mostly
lower.
Brazil's real fell 0.6% against the dollar ahead of
the central bank's meet where the Monetary Policy Committee
(Copom) is expected to cut its benchmark interest rate to a new
low according to a Reuters poll of economists.
"Our economists expect the central bank to deliver a 50bp cut
today, but see the pace of easing slowing down into year-end and
becoming more data-dependent," said Morgan Stanley analysts in a
note.
Since Copom cut rates at the end of July, central bank
president Roberto Campos Neto has said several times that low
inflation and a "benign" outlook provide room for further policy
"adjustment."
Focus was also on an expected quarter-point rate cut by the
U.S. Federal Reserve later in the day, which would be the second
of the year and set the tone for future monetary policy.
Mexico's peso traded flat, while the Colombian peso
outperformed its regional peers as oil prices pared some
of its losses after data from the Energy Information
Administration showed surprise build in U.S. crude stock piles.
Markets in Chile were shut for a public holiday.
Latin American stock indexes and currencies at 14:35 GMT
Stock indexes daily %
Latest change
MSCI Emerging Markets 1021.06 0.21
MSCI LatAm 2716.73 -0.15
Brazil Bovespa 104470.21 -0.24
Mexico IPC 43261.04 -0.13
Chile IPSA - -
Argentina MerVal - -
Colombia IGBC 12989.79 -0.12
Currencies daily %
Latest change
Brazil real 4.0975 -0.49
Mexico peso 19.3600 0.01
Chile peso - -
Colombia peso 3378.97 0.19
Peru sol 3.341 -0.09
Argentina peso - -
(interbank)
(Reporting by Agamoni Ghosh in Bengaluru; Editing by Lisa
Shumaker)
