November 8, 2018 / 2:08 PM / 7 months ago

EMERGING MARKETS-Latin American currencies steady, stocks gain

    Nov 8 (Reuters) - Latin American currencies were steady
against a strong dollar on Thursday ahead of the U.S. Federal
Reserve's meeting, while stocks rose mirroring counterparts
around the globe.
    The dollar's strength was bolstered after post mid-term
elections in the U.S., with investors watching for results of
the U.S. Federal Open Market Committee meeting, though the next
interest rake hike is expected only in December.

   "The FOMC meeting should rather be a non-event given that
rate hikes aren't expected," said You Na Park-Heger, an analyst
at Commerzbank.
    Brazil's real weakened slightly, but the Bovespa
stock index rose half a percent with shares of state-oil
company Petrobras leading gains.
    President-elect Jair Bolsonaro told reporters on Wednesday
that the chief executive of the corruption-tainted company was
not expected to stay in the new administration.
    The Mexican peso made slight moves against the dollar
ahead of the country's October inflation data, which is expected
to rise from September's print.
    The peso has been under pressure lately, having lost around
8 percent last month, as investors worry about the policy tact
of the incoming government after President-elect Andres Manuel
Lopez Obrador's (AMLO) decided to cancel an airport in Mexico
City in which billions had been invested.
    "The peso weakness increases inflation pressure, in
particular as the loss of investor confidence entails the risk
that the peso weakness could last longer," analysts at
Commerzbank said in a note.
    Peru's sol was a tad weaker against the dollar ahead
of the country's central bank meeting when it is seen leaving
its key interest rate at 2.75 percent for the eighth month in a
row, according to analysts polled by Reuters.
    "The bank will ... note that it still deems appropriate to
keep the current expansionary stance in place, particularly as
annual headline inflation remains below the 2 percent mid-point
target and economic activity continues below potential,"
analysts at Credit Suisse said in a note.
    "Yet, we will remain vigilant of subtle language
modifications that could suggest moving to a more neutral stance
in the short term."
    Key Latin American stock indexes and currencies at 1333 GMT:
 Stock indexes                            Daily %       YTD %
                                           change      change
 MSCI Emerging Markets          1001.30      0.34      -13.86
 MSCI LatAm                     2725.04       0.2       -3.84
 Brazil Bovespa                88132.07      0.48       15.35
 Mexico IPC                           -         -           -
 Chile IPSA                     5227.10      0.11        0.11
 Argentina MerVal                     -         -           -
 Colombia IGBC                 12530.69         0       10.20
 Currencies                               daily %       YTD %
                                           change      change
 Brazil real                     3.7404     -0.06      -11.42
 Mexico peso                    19.8681     -0.02       -0.85
 Chile peso                       676.2     -0.03       -9.10
 Colombia peso                  3133.39     -0.20       -4.83
 Peru sol                         3.364     -0.06       -3.78
 Argentina peso (interbank)     35.6350      0.13      -47.80

 (Reporting by Susan Mathew in Bengaluru; Editing by Bernard
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