Brazil's Bovespa crosses 96,000; Latam currencies steady

By Agamoni Ghosh
Jan 18 (Reuters) - Brazil's benchmark stock index reached an
all-time high on Friday on positive investor sentiment about the
new government's pension reform plans and U.S.-China trade
talks, while Latin American currencies steadied against the U.S.
dollar.
The Bovespa, one of 2018's top performing indexes
across the globe, hit a record high, crossing the 96,000 mark
as investors hoped the new government's pension reforms plans
may be revealed earlier than expected.
A government source said on Thursday that Economy Minister
Paulo Guedes is expected to detail the reform proposal at the
World Economic Forum's annual meeting in Davos next week, sooner
that previously suggested.
Market sentiment has been positive toward policies and
reforms proposed by President Jair Bolsonaro's new government,
in particular pension reform, which could bring down the
country's high fiscal deficit.
A Reuters poll found that Brazil's sluggish economic is
expected to grow 2.4 percent in 2019 versus 1.3 percent last
year, provided the new government implements promised reforms
and helps expand the private sector.
Markets were also boosted by positive sentiment around
U.S.-China trade talks after a Wall Street Journal report
suggested U.S. Treasury Secretary Steven Mnuchin discussed
lifting some or all tariffs imposed on Chinese imports, even
though a spokesman from the department has denied it.

"That's what seems to have got the markets excited even
though the treasuries seem to deny it, but that's a very
short-term impact," said Koon Chow, EM macro and FX strategist
at UBP.
Stocks in Chile climbed to a near four-month
high, on track for a fourth straight week of gains with Banco de
Chile emerging as one of the biggest gainers.
Currencies in Latin America steadied, with Chile's peso
hovering around one-month highs as the price of copper,
the country's main export, rose.
Brazil's real and Mexico's peso also steadied,
with the latter looking set for a eighth straight week of
gains.

Key Latin American stock indexes and currencies at 1400 GMT

Stock indexes daily %
Latest change
MSCI Emerging Markets 1016.25 0.72

MSCI LatAm 2866.75 1.12

Brazil Bovespa 96129.41 0.82

Mexico IPC - -

Chile IPSA 5464.57 0.53

Argentina MerVal - -

Colombia IGBC - -


Currencies daily %
change
Latest
Brazil real 3.7417 0.13

Mexico peso 19.0072 0.02

Chile peso 668.4 0.22

Colombia peso - -
Peru sol - -

Argentina peso (interbank) - -




(Reporting by Agamoni Ghosh in Bengaluru; Editing by Steve
Orlofsky)


2019-01-18 16:28:38

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