June 28, 2018 / 3:34 PM / 5 months ago

EMERGING MARKETS-Brazilian real bounces back after rout; poll helps

    SAO PAULO, June 28 (Reuters) - The Brazilian real
climbed almost 1 percent against the dollar on Thursday, as a
rout on Wednesday led to a technical correction and a key poll
showed Brazil's left failing to gain steam in presidential
elections scheduled for October.
    On Wednesday, the real led losses across the region, falling
over 2 percent, as lingering trade concerns weighed on
currencies across the region. A decision by a Supreme Court
Justice that all privatizations in Brazil must be approved by
Congress also hit the currency.
    However, traders saw an opportunity to buy back in on
Thursday, pushing the currency up 0.92 percent against the
dollar.
    A closely watched presidential poll helped lift spirits as
well, as left-wing candidates continued to lag.
    The poll conducted by industry group Ibope showed far-right
congressman Jair Bolsonaro leading with 17 percent of voters'
intentions, followed by environmentalist Marina Silva.
Center-left populist Ciro Gomes registered 8 percent of voter
intentions.
    While Bolsonaro's comments on various social issues are
distasteful to many and he supported interventionist economics
until recently, many see his leftist rivals as more of a threat
to the health of the Brazilian market.
    "Internally, the Ibope poll contributed (to the real's
rise), as it showed a left without momentum," said José Faria
Júnior, head of Sao Paulo consultancy Wagner Investimentos.
    Elsewhere in Latin America, the Mexican peso also
rose strongly, climbing 1.27 percent against the dollar, after
falling on Wednesday.
    Traders also said that a downward revision in first-quarter
U.S. gross domestic product growth figures helped push the
greenback down against emerging market currencies.
    Across the region, equities markets were mixed with Brazil's
benchmark Bovespa index the big winner, climbing 0.81
percent by late morning. Gains among heavily weighted banking
stocks such as Banco Bradesco SA and Itau Unibanco
Holding SA, which were both up over 1.5 percent,
supported the index as traders bought in following significant
losses on Wednesday.
    
Key Latin American stock indexes and currencies at 1457 GMT: 
    
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets         1044.15     -0.76     -9.18
                                                  
 MSCI LatAm                    2422.25      0.37    -14.67
                                                  
 Brazil Bovespa               71179.30      0.81     -6.84
                                                  
 Mexico IPC                   46768.17     -0.23     -5.24
                                                  
 Chile IPSA                    5276.64         0     -5.17
                                                  
 Chile IGPA                   26793.02     -0.01     -4.24
                                                  
 Argentina MerVal             26048.40      0.49    -13.36
                                                  
 Colombia IGBC                12319.82      0.57      8.35
                                                  
 Venezuela IBC                84662.80      1.02   6602.57
                                                  
                                                          
 Currencies                              daily %     YTD %
                                          change    change
                                Latest            
 Brazil real                    3.8385      0.92    -13.68
                                                  
 Mexico peso                   19.9180      1.27     -1.10
                                                  
 Chile peso                     648.47     -0.46     -5.22
                                                  
 Colombia peso                  2936.4      0.28      1.55
 Peru sol                        3.272      0.03     -1.07
                                                  
 Argentina peso                27.7000     -0.94    -32.85
 (interbank)                                      
                                                  
 Argentina peso                   28.1     -0.53    -31.57
 (parallel)                                       
                                                  
 

 (Reporting by Gram Slattery; Additional reporting by Camila
Moreira; Editing by Dan Grebler)
  
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