July 4, 2019 / 1:49 PM / 18 days ago

EMERGING MARKETS-Latam FX firms on rate cut hopes, Brazil's real outperforms

    July 4 (Reuters) - Rising bets on an interest rate cut by
the U.S. Federal Reserve boosted Latin American stocks and
currencies, with Brazil's real jumping to an over three-month
high on optimism over the government's pension reform.
    The real firmed at 3.7969 per dollar, its strongest
level since March 22, with Brazil's special congressional
committee set to vote on an amended pension reform bill
presented by coordinator Samuel Moreira.
    Lower House Speaker Rodrigo Maia said earlier this week the
committee will vote on plans to generate savings of around 940
billion reais ($244 billion) over the next decade.
    "We expect the reform to be approved by the Chamber of
Deputies in August, with total expected fiscal savings of 750
billion reais in ten years," Credit Suisse analysts wrote in a
note.
    Signs of progress in the pension reform has eased investors
nerves around Brazil as economists slashed their 2019 growth
outlook in recent weeks amid high unemployment and a global
slowdown.
    The Bovespa shot to another record, helped by
banking shares such as Banco Bradesco SA and Itau
Unibanco Holding SA. Shares of state-run oil firm
Petrobras gained despite a dip in oil prices
    With U.S. markets closed for its Independence Day holiday,
risk assets elsewhere rallied on hopes the Fed will cut interest
rate as early as July after soft U.S. economic data and the
nominated European Central Bank chief Christine Lagarde will
keep to a dovish policy path, sending benchmark debt yields
tumbling and the dollar down.      
    The Mexican peso rose for a fourth day in a row,
while the Chilean peso and the Colombian peso also
made slight gains.
    
    Latin American stock indexes and currencies at 1319 GMT
    
 Stock indexes                       daily %
                            Latest    change
 MSCI Emerging Markets      1064.37     0.45
                                     
 MSCI LatAm                 2911.97     1.57
                                     
 Brazil Bovespa           103272.41      1.2
                                     
 Mexico IPC                       -        -
                                     
 Chile IPSA                      -         -
                                     
 Argentina MerVal                 -        -
                                     
 Colombia IGBC                    -        -
                                     
                                            
 Currencies                          daily %
                                      change
                             Latest  
 Brazil real                 3.7997     0.69
                                     
 Mexico peso                18.9849     0.13
                                     
 Chile peso                  677.13     0.10
                                     
 Colombia peso              3190.77     0.13
                                     
 Peru sol                         -        -
                                     
 Argentina peso                   -        -
 (interbank)                         
                                     
 

 (Reporting by Sruthi Shankar in Bengaluru; Editing by Sandra
Maler)
  
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