January 17, 2019 / 2:54 PM / a month ago

EMERGING MARKETS-Brazil stocks dip on pension caution, Latam forex weakens

    By Agamoni Ghosh
    Jan 17 (Reuters) - Brazil stocks fell as investors waited
for details on a pension reform plan and Latin American
currencies retreated against the U.S. dollar on diminished risk
appetite over worries about China's economic outlook and its
trade row with the United States. 
    Brazil's benchmark index fell 0.2 percent with banks
leading declines as investors waited for any details on the new
government's pension reform agenda, which could be outlined
after President Jair Bolsonaro returns from the Jan. 22-25
annual World Economic Forum in Davos.
    "Certainly (the US-China issue) is one of the factors that
causes more caution," said Silvio Campos Neto of Tendencias
Consultoria.
    "But we are also on standby due to internal issues like
expecting disclosure of the details of the social security
reform," he added.
    A negative outlook from global banks on volatility in the
bond market through the end of 2018 also weighed on banking
stocks, which have fallen through the week. 
    Brazilian planemaker Embraer, in the midst of a
major deal with Boeing, extended losses after several
brokerages cut price targets on the stock after the company
lowered its revenue projection for 2018. 
    Retailer Via Varejo, which topped gains on the
index for the last two sessions, sunk to emerge as the biggest
decliner on the index as investors booked profits. 
    Currencies in the Latin American region fell with Brazil's
real losing over 0.8 percent, the most in two weeks,
while Mexico's peso fell 0.7 percent, coming off
three-month highs in the previous session, as falling oil prices
weighed on the crude exporting country.
    The Chilean peso weakened in line with a drop in the
price of copper, the country's main export, while stocks
 fell for the first time in 14 sessions.     
    
    Key Latin American stock indexes and currencies at 1415 GMT 
    
 Stock indexes                             daily %
                               Latest       change
 MSCI Emerging Markets           1006.80     -0.26
                                          
 MSCI LatAm                      2813.95      -0.7
                                          
 Brazil Bovespa                 94207.89      -0.2
                                          
 Mexico IPC                            -         -
                                          
 Chile IPSA                      5406.71     -0.23
                                          
 Argentina MerVal                      -         -
                                          
 Colombia IGBC                         -         -
                                          
                                                  
 Currencies                                daily %
                                            change
                                  Latest  
 Brazil real                      3.7606     -0.72
                                          
 Mexico peso                     19.0173     -0.69
                                          
 Chile peso                       670.36     -0.27
                                          
 Colombia peso                         -         -
 Peru sol                              -         -
                                          
 Argentina peso (interbank)            -         -
                                          
 

 (Reporting by Agamoni Ghosh in Bengaluru; Additional reporting
by Lais Martins and Camila Moreira
Editing by Susan Thomas)
  
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