September 11, 2018 / 9:21 PM / in 2 months

EMERGING MARKETS-Brazilian markets slump on opinion poll favoring leftist candidates

 (Updates prices, adds details on Mexico, NAFTA)
    SAO PAULO, Sept 11 (Reuters) - Brazilian equities and
currencies slumped on Tuesday after an opinion poll on the
presidential election showed leftist candidates gaining ground
while market-friendly centrists did not.
    Traders had bet that a market-friendly candidate would
emerge from the pack to win in October. A Datafolha opinion poll
released Monday night underlined that the window for such a
development is rapidly closing.
    The real currency weakened 1.46 percent, while the
benchmark Bovespa equities index fell 2.4 percent to its
lowest level since July.
    Leftist candidates such as Ciro Gomes and Fernando Haddad,
the likely stand-in for former President Luiz Inacio Lula da
Silva, made progress, the poll showed. Right-wing populist Jair
Bolsonaro extended his lead marginally after surviving a near
fatal stabbing at a campaign event.
    Market-friendly centrists such as former Sao Paulo Governor
Geraldo Alckmin continued to lag, meaning a run-off is likely
between Bolsonaro and a leftist candidate following the Oct. 7
election.       
    In Argentina, equities and the peso continued their slide
amid global trade tensions, uncertainty about Argentina's 2019
fiscal budget and talks between the government and the
International Monetary Fund. Ratings agency Fitch warned on
Tuesday that risks were mounting. 
    The Argentine peso has lost nearly 51 percent of
its value against the dollar this year. The
currency weakened 1.48 percent on Tuesday, while the benchmark
Merval equities index fell 0.88 percent.
    Mexico's peso seesawed to eventually strengthen
just slightly, as investors await news on the protracted
renegotiation of the North American Free Trade Agreement. 
    Canadian Foreign Minister Chrystia Freeland returned to
Washington on Tuesday for talks with the United States aimed at
revamping the 1994 accord between the U.S., Canada and Mexico
before an Oct. 1 deadline.
    
    Latin American stock indexes and currencies at 1958 GMT:    
 Stock indexes                           daily %  YTD % change
                             Latest       change  
 MSCI Emerging Markets         1004.22      -0.7        -12.71
                                                  
 MSCI LatAm                    2386.58     -1.99         -13.9
                                                  
 Brazil Bovespa               74601.65      -2.4         -2.36
                                                  
 Mexico IPC                   48885.71      0.08         -0.95
                                                  
 Argentina MerVal             29197.08     -0.88         -2.89
                                                  
 Colombia IGBC                11994.68      0.62          5.49
                                                  
 Chile IPSA                    5212.36      0.16         -6.33
                                                  
                                                              
 Currencies                              daily %  YTD % change
                                          change  
                                Latest            
 Brazil real                    4.1533     -1.46        -20.22
                                                  
 Mexico peso                   19.2310      0.20          2.43
                                                  
 Chile peso                     696.45     -0.06        -11.75
                                                  
 Colombia peso                  3079.9      0.22         -3.18
 Peru sol                        3.334     -0.06         -2.91
                                                  
 Argentina peso                37.9400     -1.48        -50.98
 (interbank)                                      
                                                  
 Argentina peso                  38.25     -2.61        -49.73
 (parallel)                                       
                                                  
 
 (Reporting by Gram Slattery and Paula Arend Laier; Additional
reporting by Jorge Otaola in Buenos Aires and Daina Beth Solomon
in Mexico City; editing by Grant McCool)
  
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