EMERGING MARKETS-Brazil's real extends slide on China, stop-loss orders
SAO PAULO, July 8 (Reuters) - Brazil's real fell to its weakest level in over three months on Wednesday as concern over China's plunging stock market sapped risk appetite and drove investors to cut their losses following the currency's sharp fall in recent days. China's stock market dropped further on Wednesday as companies scrambled to have their shares suspended amid investor panic. More than 30 percent has been knocked off the value of Chinese shares since mid-June, with some investors fearing that the market's turmoil will destabilize the real economy. China is Brazil's top trading partner and a major purchaser of Latin American raw materials. Concern over Chinese economic growth tends to drive down the value of the region's currencies. Nearly every Latin American currency weakened, though moves were slight in the Mexican and Colombian pesos . Brazil's real dropped for the fourth straight day to trade at 3.23 per dollar in the mid-afternoon. Traders said Wednesday's decline was amplified by efforts to cut losses by exiting positions in the real in favor of the U.S. dollar. Meanwhile, yields on Brazilian interest rate futures <0#DIJ:> dropped across the curve after data on Wednesday showed inflation rose less than expected in June. Brazil's Bovespa stock index erased the previous session's gains, driven lower by commodities exporters such a iron-ore miner Vale, which counts China as its biggest customer. Key Latin American stock indexes and currencies at 1733 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 905.22 -2.69 -2.73 MSCI LatAm 2409.52 -1.4 -10.41 Brazil Bovespa 51790.32 -1.06 3.57 Mexico IPC 44654.13 -0.81 3.50 Chile IPSA 3754.49 -0.62 -2.51 Chile IGPA 18345.34 -0.58 -2.78 Argentina MerVal 11606.46 -1.99 35.29 Colombia IGBC 10013.9 -1.13 -13.93 Venezuela IBC 14197.64 1.64 267.93 Currencies daily % YTD % change change Latest Brazil real 3.2219 -1.27 -17.52 Mexico peso 15.7929 0.04 -6.64 Chile peso 651.75 -0.38 -6.96 Colombia peso 2684.2 0.23 -11.03 Peru sol 3.1831 -0.03 -6.41 Argentina peso 9.1150 -0.03 -6.20 (interbank) Argentina peso 13.55 0.30 3.32 (parallel) (Reporting by Bruno Federowski; Editing by Meredith Mazzilli)
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