November 11, 2019 / 7:48 PM / 25 days ago

EMERGING MARKETS-Chile's peso at 16-yr low on constitution overhaul; Latam assets retreat

    * Bolivian President Evo Morales steps down 
    * Colombian markets closed for a local holiday
    * Stocks fall on U.S.-China trade deal uncertainty 

 (Updates prices, adds market details)
    By Medha Singh
    Nov 11 (Reuters) - Chilean assets tumbled on Monday to lead
Latin American markets lower as the country braces for a
constitutional makeover after weeks of political unrest, while
uncertainty over a U.S.-China trade deal kept investors away
from riskier assets.     
    Chile's peso weakened 1.5% to hit its lowest point
since March 2003, adding to a more than 6% loss in the last
three weeks. Chilean stocks fell 1.5%.  
    The Chilean government agreed to write a new constitution,
bowing to one aspect of demands made by protesters who have
called for an end to social injustices and inequality in
demonstrations that often turned violent.
    Opponents of the overhaul, however, say the current charter
has been a pillar of stability for Chile, among the region's
strongest and most investor-friendly economies.
    "The fact that the slowdown in economic activity and the
fall in inflation pressures occurred prior to the protests, only
increased investors' concerns and exacerbated the peso's
decline," said Simon Harvey, FX analyst at Monex.
    In more political drama for the region, Bolivian President
Evo Morales stepped down after weeks of protests over a disputed
Oct. 20 election, as a report from the Organization of American
States revealed serious irregularities in the ballot.

    For market participants, the unrest presents some buying
opportunity as those assets grow cheaper, said Ed Al-Hussainy, a
senior currency analyst at Columbia Threadneedle.
    Among other Latin American currencies, Brazil's real
rose 0.6% to recover from its worst week in three months, while
Mexico's peso, sensitive to trade headlines, edged
slightly lower. 
    Stocks in the region mostly fell as broader
market sentiment was dented by less-than-encouraging comments
from U.S. President Donald Trump regarding a trade deal with
China. 
    Mexico's IPC index as well as Argentina's Merval
 fell between 0.3% and 1%, but Brazil's Bovespa
bucked the trend to climb 0.5% higher.    
    Market activity remained muted as bond markets were closed
in the United States for Veterans Day, while Colombian markets
were closed for a local holiday. 
    
  Key Latin American stock indexes and currencies at 1926 GMT:
 
 Stock indexes                                  daily %
                           Latest                change
 MSCI Emerging Markets           1052.64          -1.15
                                          
 MSCI LatAm                      2739.34          -0.03
                                          
 Brazil Bovespa                108125.86           0.46
                                          
 Mexico IPC                     43582.75          -0.27
                                          
 Chile SPIPSA                    4620.65           -1.5
                                          
 Argentina MerVal               33751.27         -1.113
                                          
 Colombia IGBC                         -              -
                                          
                                                       
 Currencies                                     daily %
                                  Latest         change
 Brazil real                      4.1375           0.73
                                          
 Mexico peso                     19.1239          -0.14
                                          
 Chile peso                        754.5          -1.06
                                          
 Colombia peso                         -              -
 Peru sol                          3.361          -0.06
                                          
 Argentina peso                  59.5000           0.01
 (interbank)                              
                                          
  

 (Reporting by Medha Singh and Agamoni Ghosh in Bengaluru
Editing by Matthew Lewis)
  
Nuestros Estándares:Los principios Thomson Reuters
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