July 26, 2019 / 2:50 PM / 6 months ago

EMERGING MARKETS-Latam stocks rise; Mexico's peso muted on recession fears

    * Colombian central bank likely to hold rates 
    * Petrobras shares fall on 2019 production cut
    * Weak Mexico data stokes recession fears  

    By Agamoni Ghosh
    July 26 (Reuters) - Latin American stocks rose on Friday,
tracking gains on Wall Street that followed reports of robust
earnings, while Mexico's peso slid after weak data stoked fears
of a recession. 
   Mexico's economy, Latin America's second largest, was flat in
May from April and contracted 0.4 percent from May of 2018, the
national statistics agency said on Friday.
    This comes after the International Monetary Fund said
earlier this week it expected Mexico's economy to grow 0.9% this
year, below its forecast of 1.6% three months ago.
   Investors have been spooked by policy misdirection under
President Andres Manuel Lopez Obrador and the potentially dire
consequences for the country, which is facing a dearth of
foreign investment and possible sovereign downgrade by ratings
    The peso moved 0.2% lower, while stocks on the IPC
index were mostly flat. 
    Colombia's peso was a touch weaker ahead of a central
bank's meeting,  where officials are likely to hold the
benchmark lending rate, analysts polled by Reuters said. The
bank may, however, change its growth estimate after mixed
economic data.
    "While we doubt that Banrep (Colombia's central bank) can
escape the regional move toward more dovishness, this will be
much more a Q4 story than a current one, given that neither
growth nor inflation is suggesting any need for imminent
action," said Citi analysts in a note. 
    This week the IMF lowered its forecast for Colombia's
growth, to 3.4% from 3.5%.
    Brazil's real moved 0.3% higher, while stocks on the
Bovespa index rose marginally as shares of Petroleo
Brasileiro fell 1.5% after the state oil company
lowered its 2019 production target.
    Investors are looking forward to the Brazilian central
bank's meeting next week, where, according to a Reuters poll of
economists, it is expected to cut its benchmark interest rate to
a record low to revive a struggling economy. 
 Key Latin American stock indexes and currencies at 1415 GMT    
 Stock indexes                         daily %
                             Latest     change
 MSCI Emerging Markets       1049.34     -0.47
 MSCI LatAm                  2861.94      0.05
 Brazil Bovespa            102727.67      0.27
 Mexico IPC                 40987.37      0.13
 Chile IPSA                  4987.70      -0.1
 Argentina MerVal                  -         -
 Colombia IGBC              12911.80      -0.2
 Currencies                            daily %
 Brazil real                  3.7749      0.29
 Mexico peso                 19.0382     -0.22
 Chile peso                    698.5     -0.36
 Colombia peso               3230.53     -0.35
 Peru sol                      3.296      0.00
 Argentina peso              43.1700      0.53
 Argentina peso                44.65      0.67

 (Reporting by Agamoni Ghosh in Bengaluru)
Nuestros Estándares:Los principios Thomson Reuters
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