August 17, 2018 / 8:42 PM / 3 months ago

EMERGING MARKETS-Mexico peso up on NAFTA outlook, Brazil stocks dip

 (Recasts with peso gains)
    SAO PAULO, Aug 17 (Reuters) - Mexico's peso firmed on Friday
after U.S. and Mexican officials said they were close to
settling differences in NAFTA trade talks, while Brazilian
equities slid on presidential race jitters.
    Mexico's peso shook off losses to gain about
0.6 percent after a top White House economic adviser said on
Friday that Washington was "very, very close" to clinching a
trade deal with Mexico.
    Mexico's economy minister said earlier that he hopes to
conclude by the middle of next week outstanding bilateral issues
with the United States surrounding the renegotiation of the
North American Free Trade Agreement (NAFTA).
    Mexican stocks also gained after the news, with the S&P/BMV
stock index getting an added boost by a more than 8
percent gain in shares of bank and appliance dealer Elektra
, which saw its biggest one-day gain since April
last year.
    Meanwhile, Brazil's Bovespa stock index fell 0.9
percent after an opinion poll by Sao Paulo's XP Investimentos on
voter intentions ahead of October's race showed leftist Fernando
Haddad gaining ground on right-wing frontrunner Jair Bolsonaro,
with market-friendly centrist Geraldo Alckmin trailing in third
place.
    Traders were also spooked by instability in Turkey's lira
currency.
    "It was a double blow," said Marco Tulli, manager on the
Bovespa desk of Sao Paulo brokerage Coinvalores. 
    The biggest loser on the Bovespa was food processor Marfrig
Global Foods SA, whose shares fell 9 percent as
traders reacted negatively to news of a possible deal that would
see Tyson Foods Inc buying Marfrig's U.S. chicken
processor, Keystone Foods.
    Analysts at Itau BBA reiterated their underperform rating on
Marfrig, saying the unit's $2.5 billion price tag was too low.

Key Latin American stock indexes and currencies at 1952 GMT:
    
 Stock indexes                              daily %   YTD %
                                            change    change
                                  Latest              
 MSCI Emerging Markets             1025.81       0.4    -11.8
 MSCI LatAm                         2516.6      -0.8    -10.3
 Brazil Bovespa                   76134.91      -0.9     -0.3
 Mexico IPC                       48255.63       0.4     -2.2
 Argentina MerVal                 26236.85      -2.6    -12.7
 Colombia IGBC                    12077.15       0.2      6.2
 Venezuela IBC                    219356.3      36.5  17266.0
                                                             
 Currencies                                 daily %   YTD %
                                            change    change
                                                      
                                  Latest              
 Brazil real                        3.9135      -0.2    -15.3
 Mexico peso                        18.887       0.6      4.3
                                                      
 Chile peso                          668.3       0.1     -8.0
 Colombia peso                        3031      -0.4     -1.6
 Peru sol                            3.311       0.1     -2.2
 Argentina peso (interbank)          29.84      -0.1    -37.7
                                                      
 Argentina peso (parallel)            29.8      -0.5    -35.5
                                                      
 
 (Reporting by Paula Arend Laier and Gram Slattery; additional
reporting by Miguel Angel Gutierrez in Mexico City, Editing by
Rosalba O'Brien)
  
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