January 25, 2019 / 2:22 PM / 3 months ago

EMERGING MARKETS-Mexico's peso eyes ninth week of gains; Stocks in Chile dip

    By Agamoni Ghosh
    Jan 25 (Reuters) - Latin American currencies advanced
against a weak dollar on Friday with Mexico's peso eyeing a
ninth-straight week of gains, while stocks in Chile were set to
end lower for the first time in five weeks.
    The Mexican peso climbed about half a percent, a day
after data showed that inflation for the first half of January
rose at a milder pace than forecast, despite gasoline shortages
suffered in many parts of the country amid a government
crackdown on fuel theft.
     The cooler inflation data also pointed to the central bank
standing pat on rates at the next meeting.
    "The lower inflation is obviously helpful for rates, while
other factors are in favor of front-end rates ... externally a
more dovish Fed also helps," Citi analysts said in a note.
    Chile's peso gained more than 0.8 percent on the day
and was set to end the week higher.
    Chile's central bank is expected to increase its benchmark
interest rate to 3 percent from 2.75 percent at its policy
meeting next week, according to a monthly poll of 61 traders
published by the bank on Friday.
    Meanwhile, stocks on the IPSA index in Chile
were flat on the day but set to end the week lower with Latam
Airlines emerging as the biggest loser for the week.
    Market participants also watched developments in
crisis-stricken Venezuela where opposition leader Juan Guaido
declared himself interim president on Wednesday in a bid to push
out socialist Nicolas Maduro, the country's leader since 2013.

    The United States, more than a dozen Latin American
countries, Canada and the United Kingdom have backed Guaido.
However, Russia, which has been a long-standing ally of Maduro
and his predecessor Hugo Chavez, condemned foreign support for
Guaido, saying it violates international law and is a "direct
path to bloodshed." China, Mexico and Turkey also back  Maduro.
    Stock markets in Brazil were shut on Friday for Sao Paulo
Anniversary Day.  
    
    Key Latin American stock indexes and currencies at 1400 GMT
     
 Stock indexes                                 daily %
                             Latest             change
 MSCI Emerging Markets               1030.55      1.09
                                              
 MSCI LatAm                          2875.11     -0.06
                                              
 Brazil Bovespa                            -         -
                                              
 Mexico IPC                                -         -
                                              
 Chile IPSA                          5421.93      0.03
                                              
 Argentina MerVal                          -         -
                                              
 Colombia IGBC                             -         -
                                              
                                                      
 Currencies                                    daily %
                                      Latest    change
 Brazil real                               -         -
                                              
 Mexico peso                         18.8875      0.59
                                              
 Chile peso                              666      0.84
                                              
 Colombia peso                             -         -
 Peru sol                                  -         -
                                              
 Argentina peso (interbank)                -         -
                                              
 

 (Reporting by Agamoni Ghosh in Bengaluru
Editing by Bill Trott)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below