October 26, 2018 / 9:52 PM / 22 days ago

EMERGING MARKETS-Brazil stocks rise ahead of Sunday's presidential run-off vote

 (Updates prices)
    By Susan Mathew
    Oct 26 (Reuters) - Brazilian stocks rose nearly 2 percent on
Friday ahead of this weekend's presidential election, tempering
losses in Latin American equities after Wall Street resumed its
sell-off.
    MSCI's index of emerging market stocks in the region
 gained 1.24 percent. Although, the region's
markets fared better than emerging markets elsewhere, they were
on track to end a five-week winning streak.
    Among Latin American currencies, Argentina's peso and
Mexico's peso firmed the most, up 0.68 percent and 0.62 percent,
respectively.
    Colombia's peso was down 0.28 percent as the country's
central bank held its benchmark interest rate at 4.25 percent,
as a slight improvement in the economy and easing inflation
allowed the bank to focus more on international market
turbulence.
    Local currencies in Chile in Peru dipped slightly and
Brazil's real was flat.
    In Brazil's presidential run-off on Sunday, market-preferred
presidential candidate Jair Bolsonaro is expected to defeat
leftist rival Fernando Haddad.
    The real logged weekly gains for a sixth straight session –
its longest weekly winning streak since early last year – in a
rally underpinned by hopes of much-needed economic reforms
promised by the Bolsonaro .
    "Bolsonaro's victory is largely priced in, so the real's
gains on Monday are likely to be limited. Focus will now
probably rest on Bolsonaro's appointments and the political
course he is going to take, mainly as regards reforms," analysts
at Commerzbank said in a note.
    "We see the risk that the relief following the run-off will
soon be followed by disillusionment. It would seem that the
financial markets are very optimistic regarding the new
government's willingness to implement reforms."
    Mexico's benchmark stock index slid more than 1 percent on
Friday, pressured by uncertainty regarding the fate of an
under-construction airport in Mexico City and U.S. President
Donald Trump's threats of closing the border to stop a migrant
caravan.
    The result of a widely criticized public poll by incoming
president Andres Manuel Lopez Obrador on whether the airport
should be completed is expected next week. Analysts worry
international treaties would be violated and companies would
lose contracts if the project were scrapped, despite Lopez
Obrador's assurances that "no injustice will be committed."
    "We think a cancellation is unlikely, but the process would
legitimize the referendum as a way to make decisions," Jonas
David, an FX strategist at UBS Global Wealth Management, said in
a note.
    
    Key Latin American stock indexes and currencies at 2029 GMT:
    
 Stock indexes          Latest      Daily pct    YTD pct
                                       change     change
 MSCI Emerging Markets      948.96      -0.43     -18.08
                                               
 MSCI LatAm               2,665.17       1.24      -5.76
                                               
 Brazil Bovespa          85,719.87       1.95      12.20
                                               
 Mexico IPC              45,803.33      -1.02      -7.20
 Argentina MerVal        29,345.85       0.04      -2.39
                                               
 Colombia IGBC           12,455.98       0.28       9.55
 Venezuela IBC          445,677.41       8.87  35,183.29
                                                        
 Currencies                 Latest  Daily pct    YTD pct
                                       change     change
 Brazil real                3.6516       0.01      -9.26
 Mexico peso                19.37        0.62       1.69
 Chile peso                  686.3       0.19     -10.44
 Colombia peso                3177      -0.28      -6.14
 Peru sol                    3.348      -0.12      -3.32
 Argentina peso            36.8300      -0.11     -49.50
 (interbank)                                   
                                               
 Argentina peso               36.5       0.68     -47.32
 (parallel)                                    
 

 (Reporting by Susan Mathew in Bengaluru and David Alire Garcia
in Mexico City; Editing by Dan Grebler and Sandra Maler)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below