January 2, 2017 / 3:53 PM / a year ago

EMERGING MARKETS-Brazil real, Mexico peso seesaw in thin trading

By Bruno Federowski
    SAO PAULO, Jan 2 (Reuters) - The Brazilian real and the
Mexican peso seesawed on Monday, the first trading day of the
year, in thin trading volumes due to holidays in the United
States and other Latin American markets.
    The real weakened 0.7 percent, after posting its best
yearly performance in seven years in 2016. The Mexican peso
 was flat.
    Only around 70,000 front-month futures contracts for
the real had traded hands by early afternoon, less than
one-third of last month's daily average.
    Traders also adjusted their holdings in Brazil to moves in
global financial markets on Dec. 30, when Brazilian markets were
closed ahead of the New Year's holiday.
    Brazil's benchmark Bovespa stock index fell 1.2
percent, weighed down by shares of blue-chips Petróleo
Brasileiro SA  and Vale SA.
    U.S.-listed shares in both companies  
 had dropped on Friday as investors booked profits from
hefty gains throughout 2016.
    Units, a blend of common and preferred shares, in Brazil's
Renova Energia SA rose over 15 percent, their
biggest daily gain in a month. 
    Reuters reported that Renova is in talks to sell its Alto
Sertao II wind farm to AES Brasil, the Brazilian unit of AES
Corp, for 600 million to 700 million reais ($214
million).
    Colombian and Chilean markets did not open on Monday due to
local holidays.
    
    Key Latin American stock indexes and currencies at 1550 GMT:
 Stock indexes                                    daily %
                                      Latest       change
 MSCI Emerging Markets                 859.89       -0.28
 MSCI LatAm                           2316.93       -1.01
 Brazil Bovespa                      59763.99       -0.77
 Mexico IPC                          45605.96       -0.08
 Argentina MerVal                    16998.37        0.47
 Venezuela IBC                       31633.66       -0.23
                                                         
 Currencies                                       daily %
                                                   change
                                       Latest  
 Brazil real                           3.2759       -0.69
 Mexico peso                          20.7400        0.02
 Argentina peso (interbank)           15.9000       -0.13
                                               
 Argentina peso (parallel)              16.85        0.12
                                               
 
 (Reporting by Bruno Federowski; Editing by Daniel Flynn and
Jonathan Oatis)

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