October 2, 2019 / 3:30 PM / 8 months ago

EMERGING MARKETS-Latam stocks near 1-month lows, real tepid ahead of pension reform vote

    By Agamoni Ghosh
    Oct 2 (Reuters) - Latin American stocks fell to one-month
lows on Wednesday as weak economic indicators from the United
States raised doubts over the health of the world's largest
economy, while Brazil's real was lukewarm ahead of the passage
of a key pension reform bill. 
    MSCI's index of Latin American stocks fell
1.3% as global equities took a back seat after weak
manufacturing readings from major economies sparked global
growth worries.
    That intensified after private payroll numbers in the United
States came in softer that expected, stoking fears that the
economy may not be as strong as otherwise perceived.
    "This week has produced more evidence that global growth is
slowing, with the global manufacturing PMI reaching a new
post-credit crisis low," said Morgan Stanley analysts in a note.
    "While this would tilt the odds in favour of the FOMC
cutting rates further, the key question is whether the Fed will
be ahead of the curve and guide the market for even more cuts." 
    The Bovespa fell 2%, weighed on by losses among
financials and energy stocks, while the real made nominal
moves against the dollar ahead of the Senate's vote to approve a
landmark pension reform.
    The Senate approved the main text of the reform bill in a
first-round vote on Tuesday but rejected an amendment, a move
that will reduce expected total savings by 76 billion reais ($18
    Brazilian President Jair Bolsonaro, for whom the reform is
the boldest bid yet to narrow the country's massive budget gap,
urged senators to approve its final passage.
    Stocks in Mexico, Chile and Colombia
 all fell between 0.45 and 0.8%.  
    In Peru, the sol rose 0.2% after Vice President
Mercedes Araoz renounced her claim to the presidency in a
surprise twist to a constitutional crisis, easing a standoff
with President Martin Vizcarra over his decision to dissolve
 Latin American stock indexes and currencies at 14:47 GMT
 Stock indexes                                daily %
                           Latest              change
 MSCI Emerging Markets            989.50         -0.9
 MSCI LatAm                      2608.94        -1.42
 Brazil Bovespa                101873.84        -2.09
 Mexico IPC                     42570.40        -0.85
 Chile IPSA                      5012.53         -0.6
 Argentina MerVal               30247.76        0.604
 Colombia IGBC                  12759.02        -0.77
 Currencies                                   daily %
                                  Latest       change
 Brazil real                      4.1556         0.13
 Mexico peso                     19.7834         0.16
 Chile peso                          728         0.10
 Colombia peso                   3498.21        -0.15
 Peru sol                         3.3818         0.22
 Argentina peso                  57.8750        -0.39

 (Reporting by Agamoni Ghosh; Editing by Andrea Ricci)
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