September 13, 2013 / 3:46 PM / 6 years ago

EMERGING MARKETS-Brazil stocks up on relatively mild economy data

* Brazil economic activity slows less than expected
    * U.S. retail sales, consumer sentiment data disappoint
    * Brazil Bovespa up 0.3 pct, Mexico IPC positive 0.16 pct

    SAO PAULO, Sept 13 (Reuters) - Brazilian stocks rose on
Friday as a shallower-than-expected dip in local economic
activity data helped offset below-forecast U.S. consumer
sentiment and retail sales figures.
      Mexico's IPC index edged higher, while Chile's
bourse was little changed.
    Data on Friday showed Brazil's economic activity contracted
0.33 percent in July, less than had been forecast. This
bolstered hopes that Latin America's largest economy can avoid
negative growth numbers in the third quarter. 
    The positive sentiment was offset in part by less
encouraging data from the United States, which showed retail
sales rising less than expected in August and consumer
confidence at a five-month low in September.
    Weak economic U.S. data has helped boost Brazilian stocks in
recent months due to the expectation that the Federal Reserve
would delay the tapering of monetary stimulus should the U.S.
economy fail to gain traction. Friday's data, however, may not
have been bad enough to prevent the Fed from deciding against
cutting stimulus at its next meeting.
    "The expectation among U.S. economists that 'the beginning
of the end' of the (stimulus) program will begin next week,
while not unanimous, is strong enough to prevail over this
worse-than-expected data," said Darwin Dib, chief economist with
CM Capital Markets in Sao Paulo.
    Brazil's benchmark Bovespa stock index rose 0.3 pct
to 53,459 points. The index has risen about 11 percent since
early August.
    Shares of state-run oil firm Petrobras led gains,
up 1.9 percent. But another oil firm, debt-laden OGX Petróleo e
Gas SA led losses, down 2.56 percent. OGX late on
Thursday elected three new directors to its board in a tense
meeting that disappointed minority shareholders. 
    The outlook for Brazilian equities remains challenging in
the short run, Bank of America Merrill Lynch chief Brazil equity
strategist Felipe Hirai said in a client note on Friday. The
recent rally has become too dependent on foreign investment
inflows and bullish U.S. and Chinese economic data, and there is
limited room for further gains, he said. 
    Mexico's IPC index rose 0.16 percent while Chile's 
IPSA index was down 0.1 percent
 Stock indexes           daily  YTD %
                             %  chang
                Latest   chang      e
 MSCI LatAm     3,284.5    0.2  -13.6
 <.MILA00000PU        2             9
 Brazil         53,458.   0.28  -12.2
 Bovespa             64             9
 Mexico IPC     40,851.   0.16  -6.53
 Chile IPSA     3,827.1   -0.1  -11.0
                      1             3
 Chile IGPA     18,825.  -0.05  -10.6
                     03             6
 Argentina      4,401.7   0.15  54.21
 MerVal               0         
 Colombia IGBC  13,994.  -0.27  10.49
 Peru IGRA      16,429.  -0.42  -20.3
                     66             6
 Venezuela IBC  1,521,3   2.99  222.7
                  23.21             0
0 : 0
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