EMERGING MARKETS-Latam FX firms across the board after dovish Fed minutes
(Recasts throughout, updates prices, adds market strategists' quotes) By Aaron Saldanha April 10 (Reuters) - Latin America currencies firmed on Wednesday against a tepid dollar after the release of minutes from the U.S. Federal Reserve's March policy meeting supported investors' expectations of a dovish Fed in 2019.
The Fed is likely to leave interest rates untouched this year given risks from a global slowdown and uncertainty over trade policies, the minutes showed, providing a reprieve to developing-world assets which fell in 2018 as returns on dollar-based investments rose.
Policymakers commenting that the Fed's policy stance could shift in either direction based on incoming data "arguably gave a dovish tone to the minutes overall," Michael Hanson, TD Securities' head of global macro strategy, wrote in a note.
"The March FOMC minutes confirmed that a majority of Fed officials did not see any change in policy this year, consistent with the dot plot," Hanson wrote, referring to the depiction of policymakers' expectation of borrowing costs in the future.
Mexico's peso tacked on 0.6% in gains, while stocks lost 0.5%, hurt by materials and financials stocks.
"The expectations of loose monetary conditions going forward could be the main support for financial markets," wrote strategists at Banorte in Mexico, in a note.
Brazil's real firmed 0.7%, while Sao Paulo-traded stocks dropped 0.4%, largely weighed down by losses among the financials and materials sectors.
State-run oil firm Petroleo Brasileiro SA (Petrobras) saw its common shares and preferred shares fall 0.6% and 1.3%, respectively.
The preferred shares rose as much as 1.4% during the session, with sources telling Reuters that Petrobras would sell more pipelines after the recent success of its 90% divestiture of TAG.
Shares of miner Vale SA fell 1.1%. A report said prosecutors are planning to file criminal charges against Vale and its employees over the collapse of a mine-waste dam in January that killed hundreds of people.
Chile's peso rose 0.4%, matching the gain in the price of copper, the country's top export. Stocks dipped 0.1%.
Argentina's peso firmed while its stocks index was an aberration to the general norm seen on most bourses in the region. The MerVal rose 1.3%, supported by materials and energy stocks.
Colombia's peso firmed 0.3%, while equities rose 0.4%.
Ecopetrol SA added 0.7%, aided by a 1.4% rise in oil prices.
Latin American stock indexes and currencies at 2058 GMT Stock indexes daily % Latest change MSCI Emerging Markets 1096.05 0.24 MSCI LatAm 2839.88 0.2 Brazil Bovespa 95953.45 -0.35 Mexico IPC 44909.14 -0.54 Chile IPSA 5278.00 -0.07 Argentina MerVal 32154.54 1.3 Colombia IGBC 13290.00 0.35 Currencies daily % change Latest Brazil real 3.8243 -0.03 Mexico peso 18.8170 0.60 Chile peso 661.8 0.30 Colombia peso 3093.68 0.25 Peru sol 3.294 0.00 Argentina peso (interbank) 42.9800 1.00 (Reporting by Aaron Saldanha in Bengaluru; Editing by Richard Chang)
