August 22, 2016 / 4:02 PM / a year ago

EMERGING MARKETS-Latam stocks, currencies down on oil, Fed jitters

By Bruno Federowski
    SAO PAULO, Aug 22 (Reuters) - Latin American stocks and
currencies fell on Monday as crude prices dropped nearly 3
percent and comments from a senior U.S. Federal Reserve
policymaker boosted bets on an imminent interest rate increase.
    Oil futures retreated after China's exports of refined fuel
products soared and U.S. drillers added oil rigs for an eighth
straight week. Prospects of more Iraqi and Nigerian crude
shipments also weighed on crude.
    Currencies from oil exporters, such as the Colombian 
and Mexican pesos, weakened sharply, while shares of
state-controlled oil company Petróleo Brasileiro SA 
 dragged down Brazil's benchmark Bovespa stock index
    Fears that higher U.S. interest rates could drain capital
from emerging markets also depressed appetite for high-yielding
assets after Fed Vice Chair Stanley Fischer said the U.S.
central bank is close to its employment and inflation targets.
    His comments came after New York Fed President William
Dudley said last week that a rate hike was possible as soon as
next month. 
    Traders now await Fed Chair Janet Yellen's remarks on Friday
at the annual central bankers' meeting in Jackson Hole, Wyoming,
for clues over whether the central bank is keen to raise rates
in the coming months.
    "If Yellen sticks to the tone of the latest speeches (by Fed
policymakers), the dollar will probably strengthen even more,"
said João Paulo de Gracia Corrêa, a trader with SLW brokerage.
    Key Latin American stock indexes and currencies at 1545 GMT:
 Stock indexes                               daily %    YTD %
                                              change   change
 MSCI Emerging Markets               904.29    -0.66    14.63
 MSCI LatAm                         2447.76    -1.47    35.76
 Brazil Bovespa                    58158.53    -1.59    34.16
 Mexico IPC                        47968.19    -0.68    11.61
 Chile IPSA                         4139.69    -0.19    12.49
 Chile IGPA                        20464.38    -0.14    12.74
 Argentina MerVal                  15505.77    -0.59    32.81
 Colombia IGBC                      9899.45    -0.39    15.82
 Venezuela IBC                     12185.14    -0.59   -16.47
 Currencies                                  daily %    YTD %
                                              change   change
 Brazil real                         3.2235    -0.53    22.44
 Mexico peso                        18.3340    -0.62    -6.02
 Chile peso                           668.6    -1.32     6.15
 Colombia peso                       2890.1    -1.13     9.66
 Peru sol                             3.341    -0.63     2.18
 Argentina peso (interbank)         14.9150     0.10   -12.96
 Argentina peso (parallel)            15.38     0.26    -7.22

 (Reporting by Bruno Federowski; Editing by Paul Simao)

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