EMERGING MARKETS-Latam stocks, currencies mostly slip ahead of U.S. debate
By Bruno Federowski SAO PAULO, Sept 26 (Reuters) - Latin American mostly fell on Monday as traders favored caution following a volatile week and ahead of a widely awaited U.S. presidential debate. Uncertainty over the timing of the next U.S. rate increase as well a possible agreement to curb global oil output has boosted volatility in emerging markets recently. At is last policy meeting last week, the Federal Reserve signaled it will tighten policy very slowly after a mixed batch of economic figures. But Boston Fed President Eric Rosengren said on Friday he believed rates should rise now, increasing investors' confusion over the outlook for U.S. monetary policy. "It feels like the Fed is divided, so the market reacts strongly to any slight comment" on the possibility of a U.S. rate hike, Intercam brokerage trader Glauber Romano said. The Mexican peso slipped 0.3 percent on Monday after reaching new historic lows last week, while the Brazilian real strengthened 0.6 percent. The November U.S. presidential elections have also increasingly moved to the forefront as polls show a tight race between Democrat Hillary Clinton and Republican Donald Trump. "The greater challenge for the FX market comes from the uncertainty that a Trump presidency could create," analysts with HSBC wrote in a client note. They said the Mexican peso would likely sell off in case Trump emerges victorious as he pledged to curtail U.S. trade and financial flows with Mexico. Clinton and Trump will face off for the first time on Monday in a presidential debate after market close. Key Latin American stock indexes and currencies at 1620 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 905.65 -1.29 15.53 MSCI LatAm 2375.73 -1.01 31.16 Brazil Bovespa 58163.18 -0.91 34.17 Mexico IPC 47351.48 -0.89 10.18 Chile IPSA 4084.37 -0.24 10.98 Chile IGPA 20329.99 -0.2 12.00 Argentina MerVal 16380.32 -0.37 40.30 Colombia IGBC 9854.13 -0.84 15.29 Venezuela IBC 12666.94 1.3 -13.17 Currencies daily % YTD % change change Latest Brazil real 3.2257 0.64 22.36 Mexico peso 19.8050 -0.13 -13.00 Chile peso 661.4 -0.06 7.30 Colombia peso 2921 -0.07 8.50 Peru sol 3.361 -0.15 1.58 Argentina peso (interbank) 15.2175 -0.28 -14.69 Argentina peso (parallel) 15.76 -0.25 -9.45 (Reporting by Bruno Federowski; Editing by Nick Zieminski)
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