EMERGING MARKETS-Brazil's real, Mexican peso firm as dollar weakens
By Susan Mathew Oct 15 (Reuters) - The Brazilian real and Mexico's peso firmed on Monday as the dollar slipped on mounting geopolitical concerns in a week when investors will watch central bank minutes and earnings. The dollar dipped after U.S. retail sales data for September missed expectations. The dollar and global stock markets were also pressured by tensions between Saudi Arabia and the West, along with concerns such as the U.S.-China trade war and rising oil prices. The Mexican peso strengthened for a third straight day ahead of minutes of the central bank's October meeting expected on Thursday. However, "volatility is expected to continue in the short term" for Mexico's peso "as investors adjust their portfolios to incorporate a picture of higher yields of U.S. bonds, in a stock market with relatively high valuations," analysts at Santander said in a note. The country's stock market climbed back from an early decline as the Dow Jones Industrial index and the S&P 500 bounced off session lows. Brazil's real rose more than 1 percent, resuming trading after a three-day weekend. The currency has gained nearly 9 percent so far this month, second only to the Argentine peso. The real has been boosted by growing investor hopes that market-preferred presidential candidate Jair Bolsonaro will win the election. Brazil central bank President Ilan Goldfajn said late on Thursday that the country was well positioned to withstand shocks to its economy, and reiterated that basic interest rates will be raised only if there is a worsening balance of risks and inflation expectations. The stock market rose after two losing sessions, with gains driven by a 2.4 percent rise in iron ore miner Vale as its third-quarter production reached an all-time high. Gains however, were capped by a 33 percent plunge in shares of Smiles Fidelidade SA a loyalty program of airliner Gol Linhas Aéreas Inteligentes, after Gol said it plans to buy out minority shareholders in Smiles via a share swap whose terms will be determined by an independent committee. Other markets in Latin American were closed for local holidays. Key Latin American stock indexes and currencies at 1548 GMT: Stock indexes Daily % YTD % change change Latest MSCI Emerging Markets 980.09 2.66 -15.4 MSCI LatAm 2659.44 -0.26 -5.97 Brazil Bovespa 83979.97 1.28 9.92 Mexico IPC 47496.43 0.11 -3.76 Currencies Latest Daily % YTD % change change Brazil real 3.7231 1.47 -11.01 Mexico peso 18.8148 0.20 4.70 (Reporting by Susan Mathew in Bengaluru; Editing by David Gregorio)
