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EMERGING MARKETS-LatAm currencies, stocks gain after Fed rate hike
March 16, 2017 / 12:10 AM / 5 months ago

EMERGING MARKETS-LatAm currencies, stocks gain after Fed rate hike

    By Anthony Esposito
    MEXICO CITY, March 15 (Reuters) - Latin American currencies
and stocks gained on Wednesday after the U.S. Federal Reserve
hiked interest rates for the second time in three months,
pointing to a benign economic outlook and a steady path of rate
rises.
    After the rate move, Mexico's peso appreciated 2.25
percent versus the dollar, reaching its strongest level since
U.S. President Donald Trump's election in November.
    The currency was also lifted by a more conciliatory tone
struck by one of Trump's most protectionist trade advisers on
Mexico.
    Colombia's peso firmed 0.97 percent and the Brazilian
real surged 1.88 percent.
    Many investors widely expected the Fed to raise interest
rates, which could reduce demand for emerging market assets.
    But market participants were relieved as officials stuck to
their outlook for two more hikes this year and three more in
2018, when many had expected an accelerated spate of moves.
    Prices for gold, copper and oil all rallied as the dollar
dropped.
    That helped boost shares of Brazilian mining company Vale SA
 and state-controlled oil company Petróleo Brasileiro
SA, supporting Brazil's benchmark Bovespa stock index
.
    Key Latin American stock indexes and currencies at 2100 GMT:
    
    
 Stock indexes                                  daily %    YTD %
                                 Latest          change   change
 MSCI Emerging Markets                943.52       0.38     9.42
                                                         
 MSCI LatAm                          2588.66       1.99     10.6
 Brazil Bovespa                     66234.87       2.37     9.97
 Mexico IPC                         47470.31       0.81     4.00
 Chile IPSA                          4548.86       0.47     9.57
 Chile IGPA                         22850.03       0.48    10.20
 Argentina MerVal                   19368.39        1.6    14.48
 Colombia IGBC                       9886.90       0.97    -2.38
 Venezuela IBC                      37640.51      -0.58    18.72
                                                                
 Currencies                                     daily %    YTD %
                                                 change   change
                                      Latest             
 Brazil real                          3.1103       1.88     4.47
                                                         
 Mexico peso                          19.219       2.25     7.94
                                                         
 Chile peso                            670.2      -0.18     0.08
 Colombia peso                       2965.57       0.97     1.21
 Peru sol                              3.257       0.68     4.82
                                                         
 Argentina peso (interbank)          15.5700      -0.19     1.96
                                                         
 Argentina peso (parallel)             16.01       0.37     5.06
                                                         
                                                                
 
 (Reporting by Anthony Esposito; Editing by Bill Rigby)
  

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