July 11, 2018 / 3:07 PM / 2 months ago

EMERGING MARKETS-Brazil, Chile hit hard by U.S.-China trade dispute

    SAO PAULO, July 11 (Reuters) - The Brazilian real slid
almost 1 percent on Wednesday, paring  solid gains from Tuesday,
as traders grew more risk-averse following yet another
escalation of the trade conflict between the United States and
China.
    Latin American equities and currencies, as in other emerging
markets, have proven extremely sensitive to the ongoing trade
spat between the two superpowers, with traders selling off amid
escalations and buying back during periods of relative
geopolitical calm.
    On Tuesday, the real climbed 1.84 percent while the
Mexican peso jumped 1.53 percent to a two-month high as
traders took heart from signals that U.S.-China tensions have
yet to affect global growth.
    But late on Tuesday, the Trump administration said it would
slap 10 percent tariffs on another $200 billion worth of Chinese
imports, releasing a list of thousands of affected products,
ranging from tobacco to coal. That prompted China to warn it
would strike back, with China's commerce ministry saying it was
"shocked" by the U.S. measures.
    Brazil's real was down 0.92 percent against the dollar in
morning trade, while the country's benchmark Bovespa equities
index was off a modest 0.02 percent.
    "With the change in the foreign environment, the view toward
risky asks has turned less favorable," analysts at Sao Paulo
brokerage Guide Investimentos wrote in a note.
    Among the big losers in both currency and equity markets on
Wednesday was copper-dependent Chile, whose benchmark IPSA
equities index and peso currency slipped 0.46
percent and 0.85 percent, respectively, in morning trade.
    The country was hit hard by copper prices, which
dropped as much as 4 percent to about a one-year low, on trade
concerns. London Metal Exchange data showed that open interest
in copper futures crashed 45 percent on Tuesday to the lowest
level since November 2004.
    The biggest loser on the IPSA was shipping firm Compania Sud
Americana de Vapores SA, or CSAV, which fell 4.9
percent. Its stock followed downward shares in Hapag Lloyd AG
, in which CSAV has a major stake, as traders took
profits following a Reuters report on Monday that CMA CGM SA of
France had made an exploratory approach to its German rival over
a potential merger.
    
Key Latin American stock indexes and currencies at 1429 GMT:
    
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets         1065.76     -0.97      -7.1
                                                  
 MSCI LatAm                    2560.91      0.14     -9.58
                                                  
 Brazil Bovespa               74844.24     -0.02     -2.04
                                                  
 Mexico IPC                   48804.02     -0.38     -1.12
                                                  
 Chile IPSA                    5298.63     -0.46     -4.78
                                                  
 Chile IGPA                   26832.02     -0.43     -4.11
                                                  
 Argentina MerVal             27363.98     -0.98     -8.99
                                                  
 Colombia IGBC                12355.68     -0.39      8.66
                                                  
 Venezuela IBC               103847.14     -0.77   8121.35
                                                  
                                                          
 Currencies                              daily %     YTD %
                                          change    change
                                Latest            
 Brazil real                    3.8311     -0.92    -13.52
                                                  
 Mexico peso                   18.9075      0.12      4.19
                                                  
 Chile peso                      652.1     -0.85     -5.74
                                                  
 Colombia peso                 2867.75      0.08      3.98
 Peru sol                        3.278     -0.15     -1.25
                                                  
 Argentina peso                27.5000     -0.47    -32.36
 (interbank)                                      
                                                  
 Argentina peso                   28.4      0.35    -32.29
 (parallel)                                       
                                                  
 

 (Reporting by Gram Slattery and Patricia Duarte; Editing by Dan
Grebler)
  
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