December 4, 2017 / 4:09 PM / in a year

EMERGING MARKETS-Brazil stocks rise as China output cuts boost iron ore

    By Bruno Federowski
    SAO PAULO, Dec 4 (Reuters) - Brazilian stocks rose on Monday
after the Chinese government ordered cutbacks to steel
production, leading to tight supplies for some mill products and
lifting shares of miner Vale SA.
    Steel mills are expected to resume normal production from
around mid-March, after the end of the ordered output cuts,
about the time when steel demand seasonally picks up. That is
raising expectations that steel mills will restock iron ore
early next year.
    Spot iron ore for delivery to China's Qingdao port
.IO62-CNO=MB surged, tracking a rally in Chinese rebar
    Shares of Brazil's Vale, the world's largest iron
ore miner, rose 2.5 percent, adding the most points to Brazil's
benchmark Bovespa stock index. 
    Steelmakers Cia Siderúrgica Nacional SA and
Usinas Siderúrgicas de Minas Gerais SA also rose.
    But traders in Brazilian markets remained cautious on
lingering uncertainty over the approval of a bill streamlining
the social security system, seen as key to curbing growth of
public debt.
    Lower House Speaker Rodrigo Maia has repeatedly stressed
that he will still try to pass the plan this year, rushing to
avoid delaying the crucial vote close to next year's wide-open
presidential elections.
    The Brazilian real firmed 0.2 percent, on a day when
most Latin American currencies, such as the Mexican and
Chilean pesos were nearly flat.
    The U.S. dollar advanced broadly after the U.S. Senate
approved a major tax overhaul at the weekend, though gains were
limited as investors trimmed expectations of future U.S.
interest rate hikes.
    While U.S. officials have said the biggest change to tax
laws since the 1980s would lift economic growth, investors said
the boost would be minimal and is unlikely to force bond markets
to radically alter their U.S. monetary policy outlook in the
coming months.
    Key Latin American stock indexes and currencies at 1555 GMT:
 Stock indexes                               daily %   YTD %
                                              change  change
 MSCI Emerging Markets             1121.48       0.5   29.42
 MSCI LatAm                        2742.75      0.48   16.62
 Brazil Bovespa                   72713.52      0.62   20.73
 Mexico S&P/BVM IPC               47061.35     -0.43    3.11
 Chile IPSA                        5044.30       0.4   21.51
 Chile IGPA                       25370.54      0.38   22.36
 Argentina MerVal                 27042.45      0.37   59.85
 Colombia IGBC                    10795.39     -0.41    6.59
 Venezuela IBC                     1408.63      3.73  -95.56
 Currencies                                  daily %   YTD %
                                              change  change
 Brazil real                        3.2495      0.18   -0.01
 Mexico peso                       18.6450     -0.11   11.26
 Chile peso                         648.37     -0.09    3.44
 Colombia peso                     2991.41      0.20    0.34
 Peru sol                            3.234      0.00    5.57
 Argentina peso (interbank)        17.2700     -0.23   -8.08
 Argentina peso (parallel)           17.99      0.11   -6.50
 (Reporting by Bruno Federowski; Editing by Meredith Mazzilli)
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