March 26, 2018 / 6:05 PM / a year ago

EMERGING MARKETS-LatAm currencies jump on easing concerns over global trade

    By Bruno Federowski
    SAO PAULO, March 26 (Reuters) - Latin American currencies
jumped on Monday on optimism that the United States and China
are set to begin negotiations on trade, easing fears of a global
trade war.
    The move tracked a surge in global appetite for high-risk
assets in the wake of a Wall Street Journal report that U.S.
Treasury Secretary Steven Mnuchin was considering a visit to
Beijing to begin negotiations.
    Fading concerns over the possibility of a damaging
protectionist feedback loop following U.S. President Donald
Trump's decision to slap tariffs on steel and aluminum imports
drove MSCI's emerging market index up 0.8 percent.
    Currencies in Latin America followed along, with Mexico's
peso hitting a six-month high against the U.S. dollar
on hopes that the United States could also strike a more
constructive tone in negotiations over the North American Free
Trade Agreement (NAFTA).
    "The market believes that the so-called trade war is all
bark and no bite," economists at Continuum Economics wrote in a
client note. "The mood regarding NAFTA should brighten again."
    Shares of miners and steelmakers ranked among the largest
gainers, with Brazil's Gerdau SA, Cia Siderúrgica
Nacional SA and Usinas Siderúrgicas de Minas Gerais
SA all rising.
    Iron ore miner Vale SA rose 0.7 percent, despite
a decline in China-listed iron ore futures.

    Key Latin American stock indexes and currencies at 1750 GMT:
 Stock indexes                                daily %    YTD %
                                               change   change
 MSCI Emerging Markets               1181.56     0.81     1.18
 MSCI LatAm                          3024.05     0.76     6.12
 Brazil Bovespa                     84621.91     0.29    10.76
 Mexico IPC                         46571.86     0.12    -5.64
 Chile IPSA                          5449.76    -0.74    -2.06
 Chile IGPA                         27351.16    -0.65    -2.25
 Argentina MerVal                   31565.51     0.33     4.99
 Colombia IGBC                      11419.98      0.1     0.43
 Currencies                                   daily %    YTD %
                                               change   change
 Brazil real                          3.3031     0.42     0.31
 Mexico peso                         18.3200     1.06     7.53
 Chile peso                           605.25     0.34     1.55
 Colombia peso                       2799.24     1.55     6.53
 Peru sol                              3.215     0.22     0.68
 Argentina peso (interbank)          20.1800     0.05    -7.83
 Argentina peso (parallel)              20.8     0.67    -7.55
 (Reporting by Bruno Federowski
Editing by James Dalgleish)
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below