September 20, 2013 / 10:31 PM / in 4 years

EMERGING MARKETS-Latam stocks tumble after Fed-triggered rally ends

* Brazil Bovespa falls 1.79 pct, Mexico IPC down 1.26 pct
    * Chile bourse closed in observance of national holiday

    MEXICO CITY, Sept 20 (Reuters) - Latin American stocks fell
on Friday, after comments from a Federal Reserve official
renewed concerns that U.S. stimulus could be wound down as soon
as October. 
    The MSCI Latin American stock index snapped 
a five-day rally, falling 1.46 percent to 3,396.14. 
    The president of the St. Louis Fed, James Bullard, said on
Friday that the U.S. central bank could still scale back its
massive bond-buying program at an October meeting should data
point to a stronger economy.
    The program has boosted investor appetite for risky emerging
market assets, and the Fed's decision earlier this week to keep
stimulus in place temporarily boosted markets. 
    Brazil's benchmark Bovespa stock index fell 1.79
percent, as shares of OGX Petroleo e Gas Participacoes SA
, the oil company controlled by Brazilian tycoon Eike
Batista, fell 5 percent. The company dismissed its chief
financial officer, Roberto Bernardes Monteiro, on Friday,
according to a securities filing. 
    State-run rival Petroleo Brasileiro SA, known as
Petrobras, fell 1.15 percent, while Itaú Unibanco Holding SA
, Brazil's largest non-government bank, dropped 2.82 
    Local stocks with high liquidity such as Petrobras and Itau
tend to attract foreign investors looking for exposure to Latin
American equities.
    Mexico's IPC index dropped 1.26 percent to 41,225.98.
    Shares of bottling group Femsa dropped 1.07
percent, while lender Grupo Financiero Banorte 
slipped 1.63 percent.
    Yields on Mexican interest rate swaps edged up
after the central bank released the minutes from its latest
policy-setting meeting on Friday. The bank was deeply divided in
its decision, causing investors to pull back on bets for another
interest rate cut in the coming months. 
    Chile's bourse was closed for a local holiday.
    Latin America's key stock indexes at 2154 GMT:
 Stock indexes                    daily %    YTD %
                                   change   change
 MSCI LatAm             3,396.14    -1.46   -10.58
 Brazil Bovespa         54,110.0    -1.79   -11.23
 Mexico IPC             41,225.9    -1.26    -5.67
 Chile IPSA             3,820.84    -0.37   -11.17
 Chile IGPA             18,809.5    -0.32   -10.73
 Argentina MerVal       4,754.93    -0.28    66.59
 Colombia IGBC          14,121.0     0.10    -4.04
 Peru IGRA              16,115.2    -1.77   -21.88
 Venezuela IBC          1,660,97     0.08   252.32
0 : 0
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