CORRECTED-EMERGING MARKETS-Latam currencies lower on weak China data, oil slide
(Corrects in third paragraph to show oil prices, not Mexican peso, fell to their weakest since 2009) SAO PAULO, Dec 8 (Reuters) - Latin American currencies weakened on Tuesday after sluggish Chinese trade data and a drop in oil prices triggered a bout of risk aversion. Data showing Chinese exports fell more than expected in November reinforced worries that the world's second-largest economy could extend its slowdown into the fourth quarter, further knocking down commodity prices. The Mexican peso fell 0.9 percent, also pressured by a slide in oil prices to their lowest since early 2009 amid fears of persistent oversupply. The Brazilian real underperformed, shedding 1.5 percent after gaining at the open. Trading was volatile as investors debated the consequences of an ongoing impeachment process against President Dilma Rousseff after a rift with a key ally. Some traders believe an impeachment could help the country heal from what is likely to be its longest recession since the 1930s. Others say, however, that political turmoil could derail efforts to balance fiscal accounts and possibly provoke a downgrade of Brazil's sovereign debt. "The reaction so far has been positive, but we have to wait and see how (the impeachment process) develops to understand how the market will be affected," said Marcos Trabbold, a trader at B&T brokerage in São Paulo. Brazil's benchmark Bovespa stock index fell 1.8 percent, while shares of Grupo BTG Pactual SA plunged to a record low. The stock has lost almost half its value since Nov. 24, the day before André Esteves, the bank's founder and former chief executive officer, was arrested for allegedly obstructing a corruption probe. On Monday, prosecutors formally filed charges against Esteves, without saying whether Latin America's largest independent investment bank might be investigated. Latin American stock indexes and currencies at 1440 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 793.5 -1.77 -15.53 MSCI LatAm 1879.8 -2.1 -29.6 Brazil Bovespa 44253.33 -2.14 -11.51 Mexico IPC 42436.22 -0.51 -1.64 Chile IPSA 3590 -0.63 -6.78 Chile IGPA 17741.57 -0.57 -5.98 Argentina MerVal 13070.63 1.16 52.36 Venezuela IBC 13896.39 5.94 260.13 Currencies daily % YTD % change change Latest Brazil real 3.8152 -1.51 -30.34 Mexico peso 17.0397 -0.93 -13.47 Peru sol 3.3761 0.00 -11.76 Argentina peso (interbank) 9.7275 -0.08 -12.10 Argentina peso (parallel) 14.76 -0.20 -5.15 (Reporting by Bruno Federowski; Editing by James Dalgleish)
© Thomson Reuters 2016 All rights reserved.