UPDATE 1-EMERGING MARKETS-Latam stocks mostly slip ahead of U.S. debate
(Updates prices) By Bruno Federowski SAO PAULO, Sept 26 (Reuters) - Latin American stocks mostly fell on Monday as traders favored caution following a volatile week and ahead of a much anticipated U.S. presidential debate. Uncertainty over the timing of the next U.S. rate increase as well as a possible agreement to curb global oil output has boosted volatility in emerging markets recently. At its last policy meeting last week, the Federal Reserve signaled it would 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 0.56 percent on Monday to 19.890 pesos per greenback after reaching new historic lows last week, while the Brazilian real strengthened 0.2 percent. The Nov. 8 U.S. presidential election has 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 at at 9 p.m. (0100 GMT on Tuesday) Key Latin American stock indexes and currencies at 2130 GMT: Latin American market prices from Reuters Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 905.49 -1.31 14.02 MSCI LatAm 2366.54 -1.4 29.33 Brazil Bovespa 58053.53 -1.1 33.92 Mexico IPC 47252.54 -1.1 9.95 Chile IPSA 4089.39 -0.11 11.12 Chile IGPA 20351.04 -0.09 12.12 Argentina MerVal 16356.44 -0.51 40.10 Colombia IGBC 9882.73 -0.55 15.62 Venezuela IBC 12661.68 1.26 -13.21 (Reporting by Bruno Federowski; Editing by Nick Zieminski)
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