SAO PAULO, Jan 10 Brazilian stocks rose on
Tuesday as hopes that China would further cut steel output
lifted shares of miners and steelmakers for a second day.
The official Xinhua news agency reported on Sunday that
Hebei province, which accounts for about a quarter of China's
total steel output, plans to slash 31.86 million tonnes of steel
and ironmaking capacity this year.
Shanghai steel futures jumped 7 percent overnight, lifting
iron ore prices to their strongest level in over three weeks.
Shares of iron ore miner Vale SA were
the biggest gainers on Brazil's benchmark Bovespa stock index
. Steelmakers Cia Siderúrgica Nacional, Usinas
Siderúrgicas de Minas Gerais SA and Gerdau SA
also rose sharply.
Brazil's currency was nearly flat as bets on higher
U.S. rates offset expectations of inflows related to a $4
billion bond issuance by state-controlled oil company Petróleo
U.S. President-elect Donald Trump's promises of more public
spending and tax cuts have raised expectations that the U.S.
Federal Reserve could be forced to tighten policy this year more
quickly than earlier thought.
He has also threatened to curtail trade flows with Mexico,
driving the peso to a record low last week and leading
the central bank to cushion the currency's decline.
The peso extended losses on Tuesday to a new historic low as
traders avoided exposure to the currency ahead of a news
conference by Trump on Wednesday, his first since defeating
Democrat Hillary Clinton in a November vote.
Key Latin American stock indexes and currencies at 1410 GMT:
Stock indexes daily % YTD %
MSCI Emerging Markets 883.54 0.58 1.88
MSCI LatAm 2390.46 0.33 1.79
Brazil Bovespa 62327.46 1.02 3.49
Currencies daily % YTD %
Brazil real 3.1924 0.12 1.78
Mexico peso 21.5605 -0.86 -3.79
Chile peso 671.2 -0.03 -0.07
Colombia peso 2945.76 -0.73 1.89
Peru sol 3.386 -0.06 0.83
Argentina peso (interbank) 15.8650 0.19 0.06
Argentina peso (parallel) 16.83 0.18 -0.06
(Reporting by Bruno Federowski; Editing by Andrea Ricci)