June 24, 2019 / 2:41 PM / 24 days ago

EMERGING MARKETS-Mexican peso dips, other Latam FX steady with focus on trade talks at G20

    June 24 (Reuters) - The Mexican peso dipped on Monday while
other Latin American currencies steadied as investors refrained
from making big bets before this week's G20 summit where the
presidents of the United States and China are expected to
discuss their trade disputes. 
    The Mexican peso dipped after data showed consumer
prices rose 0.01% during the first half of June, while
economists polled by Reuters had forecast a 0.08% rise.

    Another set from the national statistics agency showed
Mexico's economy grew 0.1% in April from March and contracted
1.4% from April of 2018.
    The numbers pointed to concerns highlighted by Mexico's
central bank last month when it cut the growth forecast for the
fourth time in 2019.
    Brazil's real edged lower as investors tracked
developments around pension reforms, with the congressional
committee's vote on a revised bill scheduled for Wednesday.

    Data on Monday showed Latin America's No. 1 economy posted
lower-than-expected current account surplus and foreign direct
investment in May.
    Despite the slight dip, the currency held near a three-month
high following its biggest weekly gain since late May, aided by
signs from the U.S. Federal Reserve about possible interest rate
cuts and revival of U.S-China trade talks. 
    Most other currencies including Colombian and 
Chilean pesos steadied, with investors worldwide waiting
to see if U.S. President Donald Trump and Chinese President Xi
Jinping can curtail a trade war that is damaging the global
economy. 
    The leaders will meet during the June 28-29 G20 gathering in
Japan.
    The meeting would loom over the markets this week and could
reduce optimism in emerging markets, Morgan Stanley analysts
said in a note.
    "No deal that results in tariff escalation would not be
taken well of course, but no deal and a commitment to continue
talks should be manageable," the note said.
    Sao Paulo-traded stocks gained about 0.5%, helped by
gains in the banking sector, while Mexican stocks rose
0.2%.
    Latin American stock indexes and currencies at 1419 GMT:
    
 Stock indexes                       daily %
                            Latest    change
 MSCI Emerging Markets      1052.94    -0.03
                                     
 MSCI LatAm                 2883.12     0.13
                                     
 Brazil Bovespa           102489.32     0.47
                                     
 Mexico IPC                43687.11     0.37
                                     
 Chile IPSA                      -         -
                                     
 Argentina MerVal                -         -
                                     
 Colombia IGBC             12695.08     0.53
                                     
                                            
 Currencies                          daily %
                                      change
                             Latest  
 Brazil real                 3.8191     0.11
                                     
 Mexico peso                19.1565    -0.20
                                     
 Chile peso                   683.6     0.01
                                     
 Colombia peso                 3189     0.41
                                     
 Peru sol                         -        -
                                     
 Argentina peso                   -        -
 (interbank)                         
                                     
 

 (Reporting by Sruthi Shankar in Bengaluru; editing by Grant
McCool)
  
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