By Bruno Federowski
SAO PAULO, Nov 30 Brazilian stocks rose on
Wednesday as a rally in crude prices lifted shares of
state-controlled oil company Petrobras to their biggest daily
gain in five months.
Shares of Petróleo Brasileiro SA, as the company
is formally known, jumped 8.1 percent, by far the biggest gainer
in Brazil's benchmark Bovespa stock index.
The move came as oil futures jumped more than 8 percent.
Some of the world's largest oil producers agreed to curb oil
output for the first time since 2008. Oil heavy
Colombia's peso strengthened 2 percent, its biggest daily
gain in three weeks.
Appetite for Brazilian assets also increased after the
country's Senate approved a strict cap on federal spending in a
first-round vote despite violent protests against the amendment.
The country's real currency, however, was nearly flat
as traders help off from risky bets ahead of a central bank rate
The bank is expected to maintain a moderate pace of rate
cuts despite a sharp economic contraction in the third quarter
after weeks of market turmoil driven by the election of Donald
Trump to the White House.
Prices of Brazilian rate futures implied traders expected a
25 basis-point cut in the Selic rate to 13.75 percent, though a
50 basis-point reduction was not completely ruled out.
Key Latin American stock indexes and currencies at 1445 GMT:
Stock indexes daily % YTD %
MSCI Emerging Markets 863.15 0.55 8.1
MSCI LatAm 2330.68 1.91 24.99
Brazil Bovespa 62385.99 2.29 43.91
Mexico IPC 45560.21 0.41 6.01
Chile IPSA 4186.03 0.28 13.74
Chile IGPA 20919.24 0.24 15.25
Argentina MerVal 17439.29 2.33 49.37
Colombia IGBC 9486.92 0.69 10.99
Venezuela IBC 32172.03 3.03 120.53
Currencies daily % YTD %
Brazil real 3.3977 -0.10 16.17
Mexico peso 20.6000 0.11 -16.36
Chile peso 674.3 -0.16 5.25
Colombia peso 3098.99 1.97 2.27
Peru sol 3.408 0.23 0.18
Argentina peso (interbank) 15.7900 -0.54 -17.78
Argentina peso (parallel) 16.09 0.06 -11.31
(Reporting by Bruno Federowski; Editing by Nick Zieminski)