June 18, 2019 / 7:56 PM / a year ago

EMERGING MARKETS-Latam stocks, FX rise; Argentine stocks scale record high

 (Updates prices)
    By Susan Mathew
    June 18 (Reuters) - Latin American stocks and currencies
surged on Tuesday with a dovish boost from the European Central
Bank and positive headlines from the U.S.-China trade tensions
boosting sentiment.
    MSCI's index of Latin American stocks jumped
2%, while its index of regional currencies rose
for the first time in four sessions, up 0.7% as regional
currencies firmed against a steady dollar.
    Ahead of a U.S. Federal Reserve policy meeting outcome on
Wednesday, when the bank is expected to lay the groundwork for a
rate cut, ECB President Mario Draghi hinted at the possibility
of new rate cuts. 
    This, along with news that China and the United States are
rekindling trade talks after a lull ahead of a meeting between
Presidents Donald Trump and Xi Jinping at the G20 summit later
this month, buoyed markets globally.
    Regional assets joined the rally with Brazil stocks
rising 1.6% to hit a three-month high.
    Petrochemical company Braskem cut early losses to
trade 4.7% higher. A Brazilian judge on Tuesday granted
bankruptcy protection to the company's controlling shareholder
Odebrecht, and included Braskem in a list of subsidiaries that
creditors are not allowed to sell shares in.
    The real currency firmed 0.7% ahead of the Brazilian
central bank's rate meeting on Wednesday, when it is expected to
keep its key lending rate on hold.     
    Returning from a three-day weekend, Argentine stocks
rose about 2% and scaled an all-time high before trading 0.8%
higher, while the currency rose more than 1%.
    Mexican stocks rose 0.4%, breaking a three-day losing
run. The peso traded steady a day after rating agency
Moody's had flagged risks from state oil firm Pemex and
unpredictable policymaking by its government.
    A rise in crude oil prices helped Colombian assets. The oil-
exporting country's currency rose almost 1%, while stocks
rose 1.7% to an over four-week high, with state oil firm
Ecopetrol up 2.3%.
    Copper-exporting Chile's peso rose after four
straight sessions of losses. Copper prices hit three-week highs
on Tuesday on trade optimism.
    Santiago-traded stocks rose 0.1%. 
    Chile President Sebastián Piñera said on Tuesday the
government will accelerate a $4 billion infrastructure program
this year to revive the country's slow-growing economy. The
labor minister, Nicolás Monckeberg, also said the government
will push pension reform plans through Congress with "extreme
   Key Latin American stock indexes and currencies at 1939 GMT:
    Stock indexes             Latest    Daily %
 MSCI Emerging Markets         1025.63      1.45
 MSCI LatAm                    2788.24         2
 Brazil Bovespa               99222.15      1.64
 Mexico IPC                   43182.32      0.51
 Chile IPSA                   5,031.79      0.14
 Argentina MerVal             40820.48      0.82
 Colombia IGBC                12450.09      1.62
       Currencies             Latest    Daily %
 Brazil real                    3.8598      1.04
 Mexico peso                   19.1380      0.20
 Chile peso                      696.2      0.57
 Colombia peso                  3253.1      0.86
 Peru sol                        3.332      0.45
 Argentina peso                43.4000      1.38

 (Reporting by Susan Mathew in Bengaluru; editing by Jonathan
Nuestros Estándares:Los principios Thomson Reuters
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below