Novembro 28, 2021

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Mercados Emergentes – Recuperação Real do Brasil de Baixo Nível; Ainda é o pior desempenho da semana

    * Brazilian stocks at 11-month low
    * Real up Friday but still set to fall 3.2% over the week
    * Televisa drops after Q3 profit slide

 (Updates prices)
    By Ambar Warrick and Susan Mathew
    Oct 22 (Reuters) - Brazil's real recovered from a six-month
low on Friday as the economy minister vowed he would stay on
following an exodus from the Treasury department over plans to
boost government spending.
    The real was up 0.5%, snapping a four-day
losing streak, after having fallen more than 1% in the session.
Four senior Treasury officials resigned on Thursday, amid
signals that the government would try to increase the
constitutional spending cap in order to boost welfare spending.

    The real remained the worst performing emerging market (EM)
currency this week, set for a loss of 3.2%. But news that
Economy Minister Paulo Guedes would remain in place, putting to
bed rumors he would resign, and his appointment of a new
official helped pare losses.
    Brazilian stocks were down 1%, having earlier fallen
as by more than 4%, and were trading near 11-month lows, while
benchmark 10-year bonds steadied at three-year lows.
    The outlook is still fairly bleak for Brazil's financial
markets, said emerging market economist Thomas Mathews at
Capital Economics.
    "Brazil's debt dynamics are likely to deteriorate
significantly over time, perhaps more than is widely expected,"
he said. 
    "Minimal real economic growth and an unpopular president
looking to shore up support in advance of next year's election
suggest, to us, that the risks of further fiscal spending
splurges... are likely to remain high."
    Most other Latin American currencies firmed as the dollar
slipped. Mexico's peso was the best performer for the
day, rising 0.6% as data showed consumer prices rose more than
expected in the first half of October.
    The reading saw investors pricing in more hawkish actions by
the central bank, which has already hiked rates several times
this year.
    Chile's peso inched higher. Chile's president on
Friday named central bank chief Mario Marcel to a second term as
the country's head monetary policymaker.
    Regional stocks traded mixed, tracking a similar session on
Wall Street, where the Dow Jones Index and S&P 500
declined from record highs after U.S. Federal Reserve Chair
Jerome Powell said the bank was "on track" to begin reducing its
purchases of assets.
    Mexico's IPC index fell for a fourth straight
session, with broadcaster Televisa dropping 3.4%
after reporting a 77% drop in net profit for the third
quarter.
    
    Key Latin American stock indexes and currencies:
 
   Stock indexes           Latest    Daily %
                                     change
 MSCI Emerging Markets      1293.59     0.05
                                     
 MSCI LatAm                 2155.15    -0.63
                                     
 Brazil Bovespa           106634.46    -1.02
                                     
 Mexico IPC                51796.10    -0.43
                                     
 Chile IPSA                 4084.32     0.76
                                     
 Argentina MerVal          87022.31    0.262
                                     
 Colombia COLCAP            1406.75    -0.24
                                     
                                            
      Currencies           Latest    Daily %
                                     change
 Brazil real                 5.6417     0.45
                                     
 Mexico peso                20.1845     0.54
                                     
 Chile peso                     816     0.15
                                     
 Colombia peso              3771.11     0.20
                                     
 Peru sol                     3.961    -0.50
                                     
 Argentina peso             99.4000    -0.02
 (interbank)                         
                                     
   

 (Reporting by Ambar Warrick; editing by Philippa Fletcher and
Rosalba O'Brien)