December 20, 2016 / 2:54 PM / 7 months ago

EMERGING MARKETS-Brazil stocks rise as credit measures boost banks

4 Min Read

By Bruno Federowski
    SAO PAULO, Dec 20 (Reuters) - Brazilian stocks rose on
Tuesday after the nation's central bank announced measures to
reduce credit costs, boosting financial institutions' shares.
    Central bank governor Ilan Goldfajn unveiled a medium- to
long-term agenda that goes beyond monetary and foreign exchange
policies.
    Goldfajn told journalists the measures included simplifying
the rules governing reserve requirements in a bid to lower
operating costs. 
    He also said the bank would not use state-run lenders to
increase credit and lower its costs. Speculation had grown that
the government could force public banks to reduce rates, a
strategy pursued by former President Dilma Rousseff. 
    Shares of lenders Itaú Unibanco Holding SA, Banco
do Brasil SA and Bradesco SA advanced more
than 2 percent, lifting the country's benchmark Bovespa stock
index up 1 percent.
    Other Latin American stock and currency markets were little
changed in thin holiday season trading.
    Bullish comments by Federal Reserve Chair Janet Yellen on
Monday had earlier weighed on demand for high-yielding assets,
but traders remained uncertain over how many rate hikes the
United States will implement throughout 2017. 
    Wider emerging-market equities had slid to a one-month low
earlier on Tuesday, but Turkey's lira recovered the
losses incurred on Monday after the Russian ambassador was
killed in an attack in the nation's Ankara capital.
    
    Key Latin American stock indexes and currencies at 1430 GMT:
 Stock indexes                               daily %    YTD %
                                              change   change
                                  Latest              
 MSCI Emerging Markets               850.74    -0.05     7.18
 MSCI LatAm                         2241.27     0.88    21.41
 Brazil Bovespa                    57672.60     0.98    33.04
 Mexico IPC                        45029.03      0.3     4.77
 Chile IPSA                         4198.95    -0.09    14.10
 Chile IGPA                        20994.76    -0.08    15.66
 Argentina MerVal                  16080.69     0.52    37.73
 Colombia IGBC                     10037.56     0.14    17.43
 Venezuela IBC                     27426.28    -3.89    88.00
                                                             
 Currencies                                  daily %    YTD %
                                              change   change
                                     Latest           
 Brazil real                         3.3626     0.22    17.38
 Mexico peso                        20.4150    -0.10   -15.60
                                                      
 Chile peso                           676.6    -0.01     4.89
 Colombia peso                         2987     0.62     6.10
 Peru sol                             3.403     0.09     0.32
 Argentina peso (interbank)         15.8300     0.13   -17.99
                                                      
 Argentina peso (parallel)            16.69     0.00   -14.50
                                                      
 


 (Reporting by Bruno Federowski; Editing by Lisa Von Ahn)

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