October 4, 2017 / 9:35 PM / a year ago

EMERGING MARKETS-Brazil stocks dip from high, most Latam FX gains

 (Rewrites with Brazilian stocks, adds fund manager comment)
    By Dion Rabouin
    Oct 4 (Reuters) - Brazilian stocks slipped off a record high
on Wednesday, but analysts saw room for the recent rally to
continue as Latin America's largest economy emerges from its
worst recession in a century.
     Brazil's benchmark Bovespa stock index dipped 0.22
percent as investors took some profits. The index had jumped the
most since early January on Tuesday.
    "They're coming out of a very deep recession," said Sara
Moreno, managing director global equity for Jennison Associates.
    "The market may be ahead of itself but it's not
inconceivable that we're in higher recovery level to perhaps ...
a very good growth rate," she said.
    Chief economist Alvaro Bandeira at Brazilian broker
Modalmais said the long-term trend still pointed to more gains.
    Shares in state-controlled oil company Petroleo Brasileiro
SA slipped 2 percent as investors booked profits from
the previous day's rally. The stock rose sharply on Wednesday
after a minister said a privatization of Petrobras, as the
company is known, would be feasible in the long run.

    Meanwhile, most Latin American currencies strengthened on
Thursday on expectations that U.S. President Donald Trump will
appoint a less hawkish head of the Federal Reserve than
    Politico reported on Tuesday that Treasury Secretary Steven
Mnuchin favors the appointment of Fed Governor Jerome Powell as
Fed chair over former Governor Kevin Warsh, who is seen as more
    The report fueled expectations that U.S. interest rates will
rise slowly in coming months as inflation remains stubbornly
below the U.S. central bank's 2 percent target
    Currencies from Brazil, Chile and Colombia
 firmed, supported by the prospect of stronger demand for
high-yielding assets.
    Mexico's peso slipped ahead of upcoming talks later
this month to revamp the North American Free Trade Agreement.
    Mexico's economy minister on Tuesday urged the parties to
stop fixating on trade deficits between the countries. There are
concerns that talks could stumble as sides turn to more
contentious issues. 
    Latin American stock indexes and currencies at 19:29 GMT:
 Stock indexes                                 daily %     YTD %
                                      Latest    change    change
 MSCI Emerging Markets               1,102.04    +0.46    +27.23
 MSCI LatAm                          2,995.40    +0.17    +27.75
 Brazil Bovespa                     76,548.63    -0.28    +27.10
 Mexico S&P/BVM IPC                 50,583.48    -0.06    +10.82
 Chile IPSA                          5,450.49    +0.56    +31.29
 Chile IGPA                         27,246.41    +0.59    +31.41
 Argentina MerVal                   26,398.03    -1.03    +56.04
 Colombia IGBC                      11,068.86    -0.50     +9.29
 Venezuela IBC                     539,055.06    +4.76  +1,600.2
 Currencies                                    daily %     YTD %
                                                change    change
 Brazil real                           3.1307    +0.47     +3.79
 Mexico peso                           18.239    -0.13    +13.74
 Chile peso                           631.450    +0.11     +6.22
 Colombia peso                      2,934.300    +0.58     +2.29
 Peru sol                               3.259    +0.09     +4.76
 Argentina peso (interbank)            17.355    +0.35     -8.53
 Argentina peso (parallel)             17.770    +0.73     -5.35

 (Reporting by Dion Rabouin; additional reporting by Bruno
Federowski in Sao Paulo; editing by Grant McCool)
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