By Bruno Federowski
SAO PAULO, June 13 Latin American stocks and
currencies traded sideways on Tuesday as investors remained
cautious ahead of the U.S. Federal Reserve interest rate
decision this week.
Traders widely expect the U.S. central bank to increase
rates by a notch, a move that could smother demand for
high-yielding emerging market assets.
But a batch of mixed economic data has cast a shadow on
prospects of further hikes, driving the focus to the Fed's
post-meeting policy statement.
The Mexican peso inched up to a fresh ten-month
high, the fourth straight day of gains, but the country's
benchmark S&P/BMV IPC stock index slipped 0.1 percent.
The Brazilian real was nearly flat after firming as
much as 0.4 percent earlier in the day.
Trading in Brazilian markets has been skittish as a
ballooning political crisis has threatened to delay President
Michel Temer's ambitious reform agenda, though a decision by his
main ally to stay in his coalition fueled some optimism among
The benchmark Bovespa stock index rose 0.1 percent,
with shares of wood pulp producer Suzano Papel e Celulose SA
the biggest gainer.
Newspaper Valor Econômico reported on Tuesday that Suzano
has hired two unidentified large Brazilian investment banks to
analyze a bid for Eldorado Brasil Celulose SA.
Key Latin American stock indexes and currencies at 1620 GMT:
Stock indexes daily % YTD %
Latest change change
MSCI Emerging Markets 1010.02 0.11 17.01
MSCI LatAm 2520.06 0.05 7.62
Brazil Bovespa 61759.71 0.1 2.54
Mexico S&P/BMV IPC 49062.02 -0.14 7.49
Chile IPSA 4869.46 0.39 17.30
Chile IGPA 24381.35 0.34 17.59
Argentina MerVal 21273.05 0.6 25.74
Colombia IGBC 10720.28 -0.11 5.85
Venezuela IBC 104713.59 2.84 230.27
Currencies daily % YTD %
Brazil real 3.3070 0.12 -1.75
Mexico peso 18.0765 0.30 14.76
Chile peso 661.75 -0.07 1.35
Colombia peso 2928.7 -0.02 2.49
Peru sol 3.276 0.15 4.21
Argentina peso (interbank) 15.9000 0.16 -0.16
Argentina peso (parallel) 16.41 0.00 2.50
(Reporting by Bruno Federowski; Editing by Chris Reese)