October 19, 2017 / 3:02 PM / a year ago

EMERGING MARKETS-Brazil stocks hit one-week low as commodities fall

    By Bruno Federowski
    SAO PAULO, Oct 19 (Reuters) - Brazilian stocks fell to a
one-week low on Thursday as concerns over global demand drove
prices of base metals sharply lower, hammering shares of miners
and steelmakers.
    The benchmark Bovespa stock index fell 1.2 percent,
slipping further away from all-time highs reached earlier this
    Shares of Vale SA, the world's largest iron ore
miner, dropped for a third straight day, tracking a slump in
China-listed iron ore futures. 
    Steel mills in the northern part of China are expected to
cut output by up to half during the winter on government orders
to limit pollution, dampening demand for the metal.
    State-controlled oil company Petróleo Brasileiro SA
 also followed crude prices lower. Investors booked
profits from a two-week string of gains in oil futures triggered
by expectations of output cuts.
    The decline in Brazilian stocks came even after President
Michel Temer escaped corruption charges in a lower house
committee vote, potentially supporting his efforts to streamline
the nation's costly social security system. The full lower house
still needs to vote on the matter.
    "Once the charges are rejected, Congress will devote its
attention to issues related to the fiscal adjustment, but the
government's position to negotiate seems weaker," analysts at
Coinvalores brokerage wrote in a report.
    The Brazilian real seesawed, in tandem with other
Latin American currencies.
    The Mexican peso firmed as much as 0.4 percent but
gave up some gains after stronger-than-expected U.S. jobs
figures cemented expectations of a December interest rate hike.
Higher U.S. rates could reduce the allure of high-yielding
    Key Latin American stock indexes and currencies at 1445 GMT:
 Stock indexes                             daily %    YTD %
                                            change   change
 MSCI Emerging Markets            1115.66       -1    30.69
 MSCI LatAm                       2930.30    -0.75    26.14
 Brazil Bovespa                  75657.62    -1.22    25.62
 Mexico S&P/BVM IPC              49834.17    -0.21     9.18
 Chile IPSA                       5474.65    -0.78    31.88
 Chile IGPA                      27450.97    -0.72    32.39
 Argentina MerVal                26406.17     0.74    56.08
 Colombia IGBC                   10979.22     -0.3     8.40
 Venezuela IBC                     572.08     2.16   -98.20
 Currencies                                daily %    YTD %
                                            change   change
 Brazil real                       3.1674    -0.09     2.58
 Mexico peso                      18.8065     0.28    10.30
 Chile peso                         625.6     0.16     7.21
 Colombia peso                    2924.64    -0.09     2.63
 Peru sol                           3.236     0.00     5.50
 Argentina peso (interbank)       17.3800     0.23    -8.66
 Argentina peso (parallel)          17.98     0.39    -6.45

 (Reporting by Bruno Federowski; Editing by Dan Grebler)
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