July 12, 2018 / 3:08 PM / 5 days ago

EMERGING MARKETS-Brazil equities bounce back with eyes on trade tensions

    SAO PAULO, July 12 (Reuters) - Brazil's benchmark Bovespa
index jumped over 1 percent on Thursday, bouncing back from a
dip on Wednesday, as Latin America's largest equities market
continued to seesaw on global trade tensions.
    Latin American equities and currencies have proven sensitive
to an ongoing U.S.-China trade spat, along with U.S. President
Donald Trump's rhetoric toward other global powers. Local
traders have tracked global markets, selling as tension mounts
and buying back in as rhetoric cools.
    On Wednesday, Brazil's Bovespa fell 0.62 percent as the
United States announced tariffs on an additional $200 billion of
Chinese imports.
    Brazilian traders were heartened on Thursday, however, as
Trump struck a more conciliatory tone with NATO allies after
launching a public attack on German policy earlier in the week,
according to Filipe Villegas, an equities analyst at Sao
Paulo-based brokerage Genial Investimentos.
    Villegas added that liquidity was lower due to a Brazilian
holiday this week, as well as a relative dearth of domestic
political news, contributing to volatility on the Bovespa in
recent days.
    The index had climbed 1.22 percent in morning trade.
    The biggest gainers were steelmakers Usinas Siderurgicas de
Minas Gerais SA and Companhia Siderurgica Nacional SA
, which climbed 6 percent and 4 percent, respectively,
after a global metals rout on Wednesday sent shares sliding.
    Major currencies across the region were generally trading
stronger against the dollar, recouping Wednesday losses, when
traders fled emerging market currencies amid trade fears.
    By far the biggest gainer was the Mexican peso,
which climbed some 1.13 percent against the dollar, aided by
U.S. data for June which showed inflation barely rising,
possibly reducing the urgency for U.S. interest rate hikes.

    
Key Latin American stock indexes and currencies at 1425 GMT:
    
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets         1069.52      0.45     -8.09
                                                  
 MSCI LatAm                    2555.76      0.33     -9.93
                                                  
 Brazil Bovespa               75305.32      1.22     -1.44
                                                  
 Mexico IPC                   48858.73     -0.34     -1.00
                                                  
 Chile IPSA                    5285.54     -0.23     -5.01
                                                  
 Chile IGPA                   26769.40     -0.19     -4.33
                                                  
 Argentina MerVal             27416.00      0.68     -8.81
                                                  
 Colombia IGBC                12275.59     -0.29      7.96
                                                  
 Venezuela IBC               101929.22     10.13   7969.51
                                                  
                                                          
 Currencies                              daily %     YTD %
                                          change    change
                                Latest            
 Brazil real                    3.8651      0.39    -14.28
                                                  
 Mexico peso                   18.8845      1.09      4.31
                                                  
 Chile peso                      648.4      0.66     -5.21
                                                  
 Colombia peso                 2882.39      0.44      3.46
 Peru sol                        3.272      0.21     -1.07
                                                  
 Argentina peso                27.2000      0.74    -31.62
 (interbank)                                      
                                                  
 Argentina peso                  28.38      0.42    -32.24
 (parallel)                                       
                                                  
 

 (Reporting by Gram Slattery and Paula Arend Laier; editing by
Jonathan Oatis)
  
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