July 16, 2018 / 4:41 PM / a month ago

EMERGING MARKETS-LatAm little changed on softer China growth, crude selloff

    By Bruno Federowski
    BRASILIA, July 16 (Reuters) - Latin American stocks and
currencies were little changed on Monday as a slide in global
crude prices and softer Chinese data kept risk appetite in check
following weeks of losses.
    China's economy expanded at a slower pace in the second
quarter as Beijing's efforts to contain debt hurt activity,
while June factory output growth weakened to a two-year low.
 
    The data drove investors to take a cautious stance even as
cheap valuations brought some buyers back to the market.
Emerging market assets have taken a beating in recent weeks
because of intensifying trade tensions between the United States
and China.
    MSIC's index for Latin American stocks was
up 0.1 percent, tracking muted moves in benchmark stock indexes
in Brazil and Mexico.
    Stocks in energy companies, such as Brazilian
state-controlled Petróleo Brasileiro SA, fell in the
wake of a 4 percent decline in crude prices as Libyan ports
reopened and traders eyed potential supply increases by Russia
and other producers.
    Shares in airline company Gol Linhas Aéreas SA,
however, jumped nearly 7 percent after it signed an order for
several Boeing jets, increasing its total capacity by 30
seats.
    Currency moves were muted across the region, with the
Brazilian real slipping 0.1 percent and the Mexican peso
 up 0.2 percent.
    JPMorgan revised its year-end forecast for the Brazilian
real to 3.80 to the dollar from 3.60.
    "We expect rising trade tensions between the US and China to
keep pressure on financial conditions for EM countries in
general," JPMorgan economists wrote in a report, adding that
"domestically the political situation remains highly uncertain."
    Concerns over this year's presidential elections have
weighed on the Brazilian real, driving it to underperform every
other Latin American currency except the Argentine peso
.

    Latin American stock indexes and currencies at 1600 GMT:
 Stock indexes                                 daily %   YTD %
                                     Latest     change  change
 MSCI Emerging Markets               1070.24      -0.5   -7.15
 MSCI LatAm                          2578.63      0.06   -8.87
 Brazil Bovespa                     76508.58     -0.11    0.14
 Mexico IPC                         48361.69     -0.09   -2.01
 Chile IPSA                          5305.39      0.41   -4.66
 Chile IGPA                         26849.63      0.32   -4.04
 Argentina MerVal                   26187.83     -1.23  -12.90
 Colombia IGBC                      12176.59      -0.7    7.09
                                                              
 Currencies                                    daily %   YTD %
                                                change  change
                                      Latest            
 Brazil real                          3.8527     -0.08  -14.00
 Mexico peso                         18.8430      0.22    4.54
                                                        
 Chile peso                            649.6      0.00   -5.38
 Colombia peso                        2866.4     -0.33    4.03
 Peru sol                              3.267      0.12   -0.92
 Argentina peso (interbank)          27.2500      0.11  -31.74
                                                        
 Argentina peso (parallel)             28.55      0.46  -32.64
                                                        
 
 (Reporting by Bruno Federowski; editing by Grant McCool)
  
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