July 19, 2018 / 9:00 PM / a month ago

EMERGING MARKETS-Global trade fears weigh on LatAm stocks

 (Updates prices)
    SAO PAULO, July 19 (Reuters) - World trade tensions
pressured Latin America's major indexes on Thursday, falling in
line with other global markets, after the European Union said it
was preparing possible retaliatory measures if the United States
imposes tariffs on EU cars.
    Mexico's S&P/BMV IPC index fell 0.56 percent while
Brazil's Bovespa dropped 1.25 percent. 
    The United States imposed tariffs on EU steel and aluminum
in June, and U.S. President Donald Trump has threatened to
extend those to EU-built cars and car parts.
    The EU's trade commissioner on Thursday said the bloc is
preparing a list of U.S. imports to hit if Washington imposes
the tariffs.
    Mexico's benchmark index also took a hit from Mexican
telecommunications giant America Movil, whose shares
dropped 2 percent a day after reporting a 94-percent fall in net
profit due to currency-related swings.
    In Brazil, local political uncertainty has added to a
battering the Bovespa ahead of the country's presidential
election scheduled for October, which has traders waiting for
the broad-based "blocao" political bloc to select its candidate.
 
    The convention season for Brazilian political parties to
choose candidates effectively kicks off on Friday.
    Shares in Gol Linhas Aereas Inteligentes SA shed
2.4 percent after analysts at Deutsche Bank cut their stock
price target.
    Latin American currencies also weakened on Thursday, as U.S.
Federal Reserve Chairman Jerome Powell's recent comments on the
health of the U.S. economy shored up the dollar. 
    Brazil's currency, the real, was off 0.64 percent
while the Mexican peso lost nearly 1 percent.
    The Chilean peso dropped some 1.7 percent, its
biggest intraday loss since November, as prices for key export
copper tanked, hitting one-year lows as fund selling
accelerated due to worries about demand from the U.S.-China
trade dispute.
    
Key Latin American stock indexes and currencies at 1940 GMT:

 Stock indexes               Latest        Daily   YTD pct
                                             pct    change
                                          change  
 MSCI Emerging Markets         1,058.56    -0.95     -7.74
                                                  
 MSCI LatAm                    2,565.24    -1.42     -7.99
                                                  
 Brazil Bovespa               76,393.85    -1.25     -0.01
 Mexico IPC                   48,729.38    -0.56     -1.27
 Chile IPSA                    5,373.86    -0.07     -3.43
 Chile IGPA                   27,101.09    -0.24     -3.14
 Argentina MerVal             26,813.37    -0.85    -10.82
 Colombia IGBC                12,217.24    -0.44      7.45
 Venezuela IBC               100,926.31    -6.53  7,890.11
                                                          
 Currencies                      Latest    Daily   YTD pct
                                             pct    change
                                          change  
 Brazil real                     3.8646    -0.64    -14.27
 Mexico peso                    19.0840    -0.96      3.22
 Chile peso                       663.8    -1.73     -7.40
 Colombia peso                 2,880.85    -0.61      3.51
 Peru sol                         3.274    -0.15     -1.13
 Argentina peso (interbank)     27.7500    -0.47    -32.97
                                                  
 Argentina peso (parallel)         28.6     0.17    -32.76
                                                  
 
 (Reporting by Gram Slattery in Sao Paulo and Daina Beth Solomon
in Mexico City; Editing by James Dalgleish)
  
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