Novembro 27, 2021

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Mercados emergentes – queda real do Brasil devido ao fracasso em atrair grandes aumentos de preços

    * Brazil central bank not hawkish enough, trader says
    * Ambev jumps nearly 10% on upbeat quarterly results
    * U.S. SEC to probe Vale over 2019 dam disaster 
    * Peru's sol slips on possible mining tax increase

 (Adds details, updates prices)
    By Susan Mathew and Ambar Warrick
    Oct 28 (Reuters) - Brazil's real fell 1.1% after a
larger-than-expected rate hike disappointed traders looking for
stronger action by the central bank, while most other Latin
American currencies dipped as fears of a renewed U.S.-China
trade row weighed on sentiment. 
    Brazil's central bank lifted the key interest rate by 150
basis points late on Wednesday to combat surging inflation, more
than the hike of 100 basis points expected in a Reuters poll.

    Even as analysts warned that the aggressive pace of rate
hikes in Brazil could choke economic growth, bets for a larger
rate raise had been rising as fears of a fiscal spending breach
fed into inflation concerns. 
    "One hundred and fifty basis points is simply seen as the
minimum for a hike, so traders seem disappointed," said Juan
Perez, a senior currency trader at Tempus Consulting, adding
that it felt like the central bank came up short of a more
hawkish stance.
    But the real's decline should be temporary, he said,
as overall trade was coming back and as concerns over COVID-19
lessen. Citi strategists agreed: "Even though the market priced
in the odds of a more aggressive hike, the 150bps is not
necessarily a trigger for downside price action per se."
    Brazil's economic outlook was also expected to deteriorate,
according to a Reuters poll, with some risks of recession on the
horizon as Latin America's largest economy holds general
elections next year.
    Sao Paulo's Bovespa stock index was flat, as a
nearly 10% surge in Ambev on strong third-quarter
results was offset by losses in oil and mining stocks as
commodity prices slid.
    Shares in Vale fell further after it said the
U.S. Securities and Exchange Commission is expected to open a
probe against the miner regarding the collapse of the Brumadinho
dam, which killed 270 people in 2019.
    Sentiment, more broadly, was also hit by signs of rising
tensions between the United States and China after Beijing made
a formal complaint to Washington about the U.S. revoking
authorization of China Telecom's license.
    Mexico's peso dropped 0.4% after Petroleos Mexicanos
posted a loss in the third quarter. Concerns over the state-run
oil and gas firm's large dollar-denominated debt have dented
sentiment towards Mexico.
    Peru's sol fell 0.3% as the country's leftist
government asked Congress for authorization to overhaul the
world's second-biggest copper producer's tax code with a focus
on raising taxes on the mining sector. Fears of such a move
caused markets to tank when President Pedro Castillo took the
lead in elections earlier this year. He assumed office in July.

    
    Key Latin American stock indexes and currencies:
    
                              Latest       Daily % change
 MSCI Emerging Markets         1276.59                 -0.49
                                        
 MSCI LatAm                    2151.11                 -0.92
                                        
 Brazil Bovespa              106406.29                  0.04
                                        
 Mexico IPC                   51482.54                 -0.45
                                        
 Chile IPSA                    4094.58                 -0.51
                                        
 Argentina MerVal             86148.29                 0.932
                                        
 Colombia COLCAP               1404.67                  0.04 Currencies             Latest       Daily % change
 Brazil real                    5.6130                 -1.06
                                        
 Mexico peso                   20.3841                 -0.41
                                        
 Chile peso                      805.6                 -0.06
                                        
 Colombia peso                 3774.75                 -0.46
 Peru sol                       3.9753                 -0.25
                                        
 Argentina peso                99.6800                 -0.03
 (interbank)                            
                                        
 
 

 (Reporting by Susan Mathew and Ambar Warrick in Bengaluru
Editing by Paul Simao)