July 31, 2019 / 2:30 PM / 10 months ago

EMERGING MARKETS-Latam currencies gain ahead of Fed, Brazil rate decisions

    July 31 (Reuters) - Latin American currencies rose on
Wednesday as investors awaited an interest rate cut from the
U.S. and Brazilian central banks, while stocks fell as the
latest round of U.S.-China trade talks concluded without any
major breakthrough. 
    The U.S. Federal Reserve will conclude its two-day policy
meeting later in the day, and is widely expected to lower
interest rates by 25 basis points. If implemented, it would be
the central bank's first rate cut in a decade.
    MSCI's index for Latin American currencies
outperformed the broader emerging markets index
as the real moved 0.6% higher ahead of a key central bank
decision in Brazil. 
    Economists polled by Reuters expect the Banco Central to cut
its benchmark interest rate to a record low on Wednesday to
revive a sagging economy and bring inflation back up toward
    Brazil, Latin America's largest economy, is struggling to
emerge from a crippling recession, with the government focused
on passing through Congress a pension overhaul it hopes will
prop up public finances and kick-start growth.
    Stocks in Sao Paulo were marginally lower while
those in Mexico city shed 0.6% after data showed the
economy narrowly avoided slipping into recession during the
first half of 2019.
    Mexican President Andres Manuel Lopez Obrador reiterated
that the country's economy was doing well, saying that latest
data was "good news". He also added that next year's budget,
will not include new taxes or fuel price increases, pushing the
peso 0.3% higher.     
    Colombia's peso rose 0.3%, while the IGBC index
 moved a touch higher.   
    Colombia will need to raise nearly 8 trillion pesos ($2.4
billion) to finance the government's proposed 2020 budget,
Finance Minister Alberto Carrasquilla said on Tuesday.
    Latin America's fourth-largest economy has a fiscal deficit
goal of 2.1% of gross domestic product for 2020, considered key
to maintaining its current credit ratings.
  Key Latin American stock indexes and currencies at 1410 GMT

 Stock indexes                                     daily %
                            Latest                  change
 MSCI Emerging Markets                1037.87        -0.51
 MSCI LatAm                           2848.35        -0.23
 Brazil Bovespa                     102193.21        -0.72
 Mexico IPC                          40912.82         -0.6
 Chile IPSA                           4996.54        -0.09
 Argentina MerVal                    42485.67        0.053
 Colombia IGBC                       12766.91         0.21
 Currencies                                        daily %
                                       Latest       change
 Brazil real                           3.7704         0.63
 Mexico peso                          18.9992         0.34
 Chile peso                             700.3        -0.24
 Colombia peso                        3294.73         0.14
 Peru sol                               3.297         0.00
 Argentina peso                       43.8100         0.37

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