January 13, 2020 / 8:20 PM / 7 months ago

EMERGING MARKETS-Latam currencies weaken, Brazil shares break 6-session losing streak

 (Updates prices)
    * Brazil's real hits one-month low, down 1%
    * Latam FX underperform broader EM
    * Brazil shares up 1.4% in broad-based rally 
    * Mexican gross fixed investment fell 1.5% in October 

    By Susan Mathew
    Jan 13 (Reuters) - Brazil's real slid to a one-month low on
Monday, leading a decline across major currencies in Latin
America, while Sao Paulo-listed stocks ended a six-session
losing streak amid a rally in global markets fueled by trade
optimism.
    Extending losses to a third session, the real
weakened 1% against a steady dollar, and the currency of oil
exporter Colombia dropped 0.2% as crude prices slipped,
while those of Mexico and Chile traded flat. 

    Broader emerging market currencies rallied on
hopes that the United states and China would ink a trade deal
this week, a moves towards ending a trade war that has roiled
markets for 18 months.
    Prolonged economic weakness in Latin America weighed on the
region's currencies and an easing cycle in Mexico and Brazil saw
the central banks cut interest rates four times last year. 
    While analysts debate the possibility of continued easing in
Brazil this year as rates reached historic lows, the Mexican
central bank is expected to keep cutting rates as inflation
slipped further below the bank's target.

    Latest data showed Mexican gross fixed investment fell 1.5%
in October from the previous month.
    "We do have some domestic factors in Latam that have weighed
somewhat and there is a little bit of a view that this trade
deal, at the margin, is benefiting other regions more than
Latam," said Christian Lawrence, senior market strategist at
Rabobank in New York.
    While Wall Street touched record highs on trade optimism and
earnings, regional stocks painted a mixed picture.
    Brazil's benchmark Bovespa index added 1.4%, after
losing 2.6% over the last six sessions. The rally was
broad-based, led by financials and material stocks, but declines
in energy shares kept gains in check. 
    Marking their fourth straight session in the black, Mexican
shares rose 0.5% with conglomerate Orbia Advance
Corporation jumping up to 14% on reports that several
companies are interested in buying its vinyl business.

    Colombian equities fell for the third time in four
sessions, while Argentine shares shed 1.6% after two day
of gains.

    Key Latin American stock indexes and currencies at 2003 GMT:
    Stock indexes             Latest    Daily %
                                         change
 MSCI Emerging Markets         1144.55      0.96
                                        
 MSCI LatAm                    2909.46     -0.29
                                        
 Brazil Bovespa              117143.45      1.42
                                        
 Mexico IPC                   44887.23      0.51
                                        
 Chile IPSA                    4958.79     -0.75
                                        
 Argentina MerVal             42036.21    -1.648
                                        
 Colombia COLCAP               1650.79     -0.25
                                        
                                                
       Currencies             Latest    Daily %
                                         change
 Brazil real                    4.1419     -0.04
                                        
 Mexico peso                   18.7943     -0.07
                                        
 Chile peso                      775.2     -0.44
                                        
 Colombia peso                 3266.75      0.04
 Peru sol                        3.332     -0.03
                                        
 Argentina peso                59.9300     -0.19
 (interbank)                            
                                        
 
 (Reporting by Susan Mathew and Ambar Warrick in Bengaluru;
Editing by Cynthia Osterman)
  
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