EMERGING MARKETS-Latam stocks fall as Brexit woes linger
(Updates prices, adds Mexico) By Bruno Federowski SAO PAULO, July 6 (Reuters) - Latin American stocks fell on Wednesday as traders continued to fret about Britain's decision to leave the European Union. Financial market volatility stemming from Britain's June 23 referendum raised worries about global financial stability, putting central banks on alert. Mexico's benchmark IPC stock index fell for a third straight day to a weekly low on wider global risk aversion, which also dragged down the stock market in Chile. However, several currencies of key commodity exporters recovered from declines earlier in the day after oil prices rose almost 2 percent, reacting to data showing strong growth in the U.S. services sector. Higher crude prices helped support the Mexican peso on Wednesday, which inched up 0.2 percent. The currency had declined for three consecutive trading days, even after the central bank raised its key interest rate aggressively last week. The Brazilian real was the biggest loser in Latin America, as the central bank resorted to purchasing dollars in futures markets after the currency closed June with its biggest monthly advance in 13 years. Also pressuring demand for Brazilian assets were concerns interim President Michel Temer's government could announce an unambitious fiscal target for 2017. "If next year's primary deficit looks like this year's, it will be horrendous. It would raise doubts about a lack of fiscal effort," said Arnaldo Curvello, Ativa brokerage head of asset management. Key Latin American stock indexes and currencies at 1953 GMT: Stock indexes Latest Daily YTD pct pct change change MSCI Emerging Markets 820.86 -1.3 4.73 MSCI LatAm 2,202.94 -1.21 21.87 Brazil Bovespa 51,894.57 0.1 19.71 Mexico IPC 45,308.02 -1.12 5.42 Chile IPSA 3,995.66 -0.56 8.57 Chile IGPA 19,740.84 -0.43 8.76 Argentina MerVal 14,647.45 -1.07 25.46 Colombia IGBC 9,735.67 0.5 13.90 Venezuela IBC 11,785.33 -5.77 -19.21 Currencies Latest Daily YTD pct pct change change Brazil real 3.3366 -1.12 15.46 Mexico peso 18.7825 0.17 -9.01 Chile peso 662.2 0.05 6.69 Colombia peso 2,999.5 -0.62 5.36 Peru sol 3.281 0.09 3.90 Argentina peso (interbank) 14.6900 0.76 -13.15 Argentina peso (parallel) 14.86 0.93 -4.13 (Reporting by Bruno Federowski; Additional reporting by Flavia Bohone, Paula Arend Laier and Anna Yukhananov; Editing by Frances Kerry and Steve Orlofsky)
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