September 10, 2019 / 8:15 PM / 10 months ago

EMERGING MARKETS-Brazil shares end 4-day run of gains, hit by weak China data

 (Updates prices, adds analyst quote)
    By Ambar Warrick
    Sept 10 (Reuters) - Brazilian shares broke a four-day run of
gains on Tuesday, mirroring declines in global stocks after weak
China data fueled growth concerns, while currencies were tepid
ahead of major central bank policy decisions.
    The Bovespa dropped 0.4%, easing off one-month highs
as a handful of retailers fell on the news that U.S. online
retail giant Inc will launch its Prime
subscription service in the country.
    Magazine Luiza, Via Varejo and B2W
 fell between 4% to 6%, leading declines in the
    Major lenders including Banco Bradesco SA, Itau
Unibanco Holding SA and Banco do Brasil SA
dropped about 2% each after Brazil's government cut its annual
inflation forecast, pointing to further monetary easing in Latin
America's largest economy.
    The government also slightly raised Brazil's annual economic
growth forecast.
    The MSCI's index of Latin American stocks
retreated about 0.3%, with shares in Mexico and Colombia
 in the red after data showed China's producer prices
shrank at the sharpest pace in three years in August, fueling
fears of a global economic slowdown.    
    Most currencies made slight moves against the dollar, as
investors awaited the European Central Bank's monetary policy
decision on Thursday, when it is expected to cut interest rates
and restart an asset purchase programme.
    Investors, however, are anxious about how far policymakers
are willing to go to stimulate their slowing economies.
    "Global markets have taken on a subdued tone as investors
look ahead to Thursday's crucial ECB policy meeting," Ned
Rumpeltin from TD Securities wrote in a note.
    The Brazilian real pared early losses and traded
sideways, with other currencies in the region
moving in a similar range.
    The Mexican peso added about 0.2%. Finance Minister
Arturo Herrera said state-oil firm Pemex is exploring opening a
bidding process for public-private contracts in order to ensure
the debt-laden firm has enough money to invest and manage its
debt profile.
  Latin American stock indexes and currencies at 1928 GMT:
        Stock indexes                  Latest       Daily %
 MSCI Emerging Markets                    1007.89       -0.27
 MSCI LatAm                               2663.72       -0.34
 Brazil Bovespa                         102807.52       -0.36
 Mexico IPC                              42609.18       -0.12
 Chile IPSA                               4880.60        0.41
 Argentina MerVal                        28176.04       3.678
 Colombia IGBC                           12768.22       -0.06
           Currencies                  Latest       Daily %
 Brazil real                               4.0975       -0.02
 Mexico peso                              19.5200        0.21
 Chile peso                                711.55        0.41
 Colombia peso                            3359.53        0.27
 Peru sol                                   3.343        0.18
 Argentina peso (interbank)               56.0000        0.04
 (Reporting by Ambar Warrick and Sruthi Shankar in Bengaluru;
Editing by Sandra Maler)
Nuestros Estándares:Los principios Thomson Reuters
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