September 20, 2016 / 1:42 AM / 2 years ago

EMERGING MARKETS-Mexico peso, stocks down ahead of Fed decision

(Updates prices)
    SAO PAULO, Sept 19 (Reuters) - Mexico's peso and stocks
slipped on Monday as investors showed caution ahead of policy
meetings by the U.S. Federal Reserve and the Bank of Japan on
    A range of mixed economic figures and conflicting remarks by
key Fed policymakers have kept investors guessing over the
timing of the next U.S. rate hike.
    J.P.Morgan revised its forecasts this week to continue to
show an initial increase in December 2016 followed by two hikes
in 2017. Previously, the bank forecast three rate hikes next
    "We continue to anticipate that inflation will slowly move
higher, though the decline in some measures of inflation
expectations could trim some of the upside risk to that
forecast," economist Mike Feroli wrote in a client note.
    In Japan, policymakers could well go in the opposite
direction by easing policy, though conflicting reports on what
it might do have stoked uncertainty.
    Mexico's peso slid by 0.33 percent, its fifth consecutive
loss, to 19.685 per dollar, after hitting a record low
on Friday of 19.777 per greenback on fears of a Fed hike
following data showing higher-than-expected U.S. inflation.
    The peso has also been hurt by concerns that U.S. Republican
Presidential hopeful Donald Trump, who has promised to build a
wall on the U.S.- Mexico border and make Mexico pay for it,
could win November elections. 
    The IPC index fell just 0.11 percent to close at
45,871.04 points, led down by losses in Telecoms giant American
Movil and Walmart de Mexico, which dropped
 1.97 percent and 1.38 percent respectively.   

 (Reporting by Bruno Federowski and Miguel Angel Gutierrez;
Editing by Chris Reese and Sandra Maler)
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