February 7, 2019 / 10:15 PM / 10 months ago

EMERGING MARKETS-Latam stocks, FX mostly dip; Mexican peso firms

 (Recasts; updates prices, adds quotes)
    Feb 7 (Reuters) - Most Latin American stocks fell on
Thursday as fears about slowing global growth weighed, and while
Latin America currencies broadly softened against the dollar,
the implicit hawkishness perceived in an outlook from Mexico's
central bank supported the peso.
    Equities across the region joined their global peers in
falling as investors moved to safe havens after U.S. President
Donald Trump said he did not plan to meet with Chinese President
Xi Jinping before an early March deadline set by the two
countries to achieve a trade deal.
    MSCI's index of Latin American stocks fell
0.8 percent, while its index of Latin American currencies
 dropped 0.4 percent.
    Alessandro Faganello, a trader with Advanced Corretora in
Brazil, said markets were adjusting from the strong run they
have had until recently. 
    Mexican stocks fell 0.5 percent, with cement giant
Cemex tumbling 6.5 percent to lead losses on the
index after a surprise fourth-quarter loss surprised investors.

    Mexico's peso ticked up 0.1 percent. While the
central bank matched expectations in leaving its key rate
unchanged, its outlook was perceived by some to have a hawkish
angle.
    Sacha Tihanyi, TD Securities' deputy head of EM strategy,
wrote that the outlook "leaves an implicitly hawkish bias
considering recent inflation outcomes and the market's
positioning in the TIIE," referring to the benchmark rate used
for cash balances.     
    Benchmark Brazilian stocks dipped 0.2 percent,
weighed on by losses among energy and materials stocks.
    Preferred shares of state-run oil firm Petroleo Brasileiro
SA tumbled 1.6 percent, mirroring lower oil prices
.
    Mining giant Vale SA clocked its lowest closing
level in nearly 10 months, down 2.1 percent.
    Morgan Stanley downgraded the miner's U.S.-listed depository
receipts, which fell 1.8 percent. The bank also
eliminated the $17 price target it had, saying it lacks "clarity
on what multiple the market will assign to the shares in the
near term."    
    Chilean stocks were flat while the local peso
 fell half a percent, hurt by a drop in the price of
Chile's key export, copper.    
    The country has relatively high exposure to global trade
through its reliance on China as a primary destination for its
exports of the industrial metal.      
    Argentina's stocks benchmark fell 2.2 percent, while
the country's peso weakened about 0.8 percent.       
    Colombian stocks shed 1.2 percent as weak oil prices
led to petroleum major Ecopetrol SA dropping 1.9
percent.
    
    
    Key Latin American stock indexes and currencies at 2155 GMT
    
 Stock indexes               Latest      Daily pct
                                            change
 MSCI Emerging Markets         1,041.97      -0.62
                                         
 MSCI LatAm                    2,845.63      -0.78
                                         
 Brazil Bovespa               94,405.59      -0.24
 Mexico IPC                   43,624.55      -0.53
 Chile IPSA                    5,426.94       0.01
 Argentina MerVal             35,928.99      -2.19
                                         
 Colombia IGBC                11,923.68      -1.23
                                                  
 Currencies                      Latest  Daily pct
                                            change
 Brazil real                     3.7166      -0.17
 Mexico peso                    19.0884       0.07
 Chile peso                       657.8       0.00
 Colombia peso                  3,115.2      -0.36
 Peru sol                         3.324       0.00
 Argentina peso (interbank)     37.8000      -0.66
                                         
 
 (Reporting by Aaron Saldanha in Bengaluru and Paula Arend Laier
in Sao Paulo; Editing by Dan Grebler)
  
Nuestros Estándares:Los principios Thomson Reuters
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