January 22, 2019 / 2:13 PM / 3 months ago

EMERGING MARKETS-Brazil stocks fall amid global growth fears; Latam FX subdued

    By Agamoni Ghosh
    Jan 22 (Reuters) - Stocks in Brazil fell on Tuesday dragged
by shares of material companies amid global growth fears
stemming from weak Chinese economic data and a lowered outlook
for 2019 from the International Monetary Fund. 
    The IMF trimmed its global growth forecasts on Monday as
trade tensions and weakness in Europe loomed, an action that 
came shortly after China reported its slowest growth in 28 years
for 2018, sending equities lower worldwide.  
    The U.S. dollar strengthened against a basket of currencies
as investors sought refuge in the safe asset and moved away from
riskier bets, including emerging market currencies.
    "EM assets are taking a breather as global growth concerns
remain high ... Optimism on trade is fading too," said Morgan
Stanley analysts in a note. 
    Sao Paulo's benchmark index Bovespa fell 0.2 percent
pressured by a drop in shares of material companies with
iron-ore miner Vale emerging as one of the top losers
on the index.
    Investor  also focused on President Jair Bolsonaro's speech
at the World Economic Forum in Davos, Switzerland, where he is
slated to unveil details about the new government's economic
reforms, particularly pension reforms.
    The market also has in its radar on meetings between
Brazil's minister of economy, Paulo Guedes, and other world
economic authorities at the summit.    
    In currencies, Brazil's real and Mexico's peso
were a shade weaker, with the latter falling for the
fourth-straight session as a near 2 percent drop in oil prices
weighed on the crude exporter. 
    Chile's peso fell by 0.2 percent as the price of
copper declined, while stocks on the IPSA index
dropped about half a percent with steel producer CAP
emerging as the biggest loser on the index. 
    
    Key Latin American stock indexes and currencies at 1330
    
    
 Stock indexes                                  daily %
                             Latest              change
 MSCI Emerging Markets             1013.84        -0.45
                                            
 MSCI LatAm                        2843.42        -0.12
                                            
 Brazil Bovespa                   95888.40        -0.13
                                            
 Mexico IPC                              -            -
                                            
 Chile IPSA                        5421.85        -0.63
                                            
 Argentina MerVal                        -            -
                                            
 Colombia IGBC                           -            -
                                            
                                                       
 Currencies                                     daily %
                                    Latest       change
 Brazil real                        3.7547        -0.08
                                            
 Mexico peso                       19.1739        -0.08
                                            
 Chile peso                         673.33        -0.18
                                            
 Colombia peso                           -            -
 Peru sol                                -            -
                                            
 Argentina peso (interbank)              -            -
                                            
 

 (Reporting by Agamoni Ghosh in Bengaluru; Additional reportig
by Laís Martins and Camila Moreira)
  
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