EMERGING MARKETS-Latam stocks, currencies down for 2nd day as Brexit woes linger
By Bruno Federowski
SAO PAULO, June 27 (Reuters) - Latin American equities and currencies fell on Monday for the second consecutive trading day as lingering concerns over Britain's decision to leave the European Union weighed on financial stocks.
Shares of Petrobras and lenders Itaú Unibanco SA and Bradesco SA hit Brazil's benchmark Bovespa stock index, which fell 1.72 percent.
Mexican broadcaster Televisa slid 3.87 percent while Cement maker Cemex fell 5.6 percent, dragging the bourse down 1.35 percent.
"Friday's Brexit jump scare has faded, but markets are still worried" about the possible effects on global demand for risky assets, SLW brokerage trader João Paulo de Gracia Corrêa said.
In currency markets, the Mexican peso weakened 1.28 percent on Monday, after slipping by the most in nearly 5 years to a fresh record low on Friday.
Of the region's currencies, the highly liquid Mexican peso has been affected most by the British referendum, raising speculation of government action to limit price pressure.
Mexico's central bank said on Friday that it was ready to act on interest rates ahead of a monetary policy meeting this week. The median expectation of analysts polled by Reuters is for a 25 basis point hike on Thursday.
Goldman Sachs put the likelihood of a rate hike, potentially as high as 50 basis points, at 65 percent if the Mexican peso remains under "depreciation pressure" or high volatility in the days before the meeting, economist Alberto Ramos wrote in a report. (Reporting by Bruno Federowski; Editing by Lisa Von Ahn and Diane Craft)
© Thomson Reuters 2017 All rights reserved.