January 15, 2020 / 8:09 PM / 3 days ago

EMERGING MARKETS-Latam markets fall; Brazil's real dips on weak data

    * U.S., China sign Phase 1 trade deal 
    * Comments after signing held no surprises
    * Brazilian real slips after disappointing retail sales
    * Rouble cuts losses incurred after govt's resignation

 (New throughout, updates prices and market activity after U.S.,
China sign Phase 1 trade deal)
    By Susan Mathew
    Jan 15 (Reuters) - Brazil's real slid 1% on Wednesday on
disappointing retail sales data, while Latin American stock
markets were mostly lower, unmoved by the long-expected signing
of a U.S.-China Phase 1 trade deal at a ceremony that held no
surprises. 
    The real touched its lowest in 5-1/2 weeks and led
losses among regional currencies. Data showed retail sales in
Latin America's biggest economy rose just 0.6% in November from
the previous month, below a forecast of 1.1%.
    "Both retail sales and industrial production, the latest
indicators, have shown that there is little consistency in the
recovery process of the Brazilian economy, which hinders local
markets a little," said Alvaro Bandeira, chief economist at the
digital bank, Modalmais.
    Sao Paulo-listed stocks lost 1% and posted their
biggest decline in more than seven weeks. The index marked its
seventh losing session in nine.
    After roiling market for 18 months, Washington and Beijing
took the first step toward ending their trade war by signing a
Phase 1 trade deal, a move already priced into markets. 
    The deal cut some U.S. tariffs on Chinese goods in exchange
for Chinese pledges to purchase more American farm, energy and
manufactured goods and address some U.S. complaints about
intellectual property.
    Wall Street held gains and remained near all-time highs, but
regional bourses barely reacted, staying in well the red. MSCI's
index of Latam stocks slipped 1.4% and looked to
clock its biggest daily decline since late November. 
    China's pledge to buy more U.S. agricultural goods could
hurt Brazil by reducing demand in the biggest market for
Brazilian soybeans, said Edward Glossop, Latin America economist
at Capital Economics in London.
    In Mexico, shares fell 0.3%, while the peso -
a weather vane for trade sentiment - traded little changed
against a weaker dollar.
    The Chilean peso eased about 0.6% on falling prices
for cooper, the country's main export. Colombia's currency
 tracked oil prices lower. 
    Elsewhere, Russia's rouble traded flat after dropping
to 61.81 per dollar following the surprise resignation of Prime
Minister Dmitry Medvedev's government.
    
    Key Latin American stock indexes and currencies at 1951 GMT:
    Stock indexes             Latest    Daily %
                                         change
 MSCI Emerging Markets         1138.19      -0.5
                                        
 MSCI LatAm                    2872.27     -1.39
                                        
 Brazil Bovespa              116465.28     -0.99
                                        
 Mexico IPC                   44633.24     -0.31
                                        
 Chile IPSA                    4883.68     -0.78
                                        
 Argentina MerVal             41028.31    -1.454
                                        
 Colombia COLCAP               1649.43     -0.23
                                        
                                                
       Currencies             Latest    Daily %
                                         change
 Brazil real                    4.1779     -1.13
                                        
 Mexico peso                   18.8047     -0.16
                                        
 Chile peso                      775.2     -0.58
                                        
 Colombia peso                 3297.65     -0.35
 Peru sol                        3.323     -0.06
                                        
 Argentina peso                59.9500      0.18
 (interbank)                            
                                        
 
 (Additional reporting by Luana Maria Benedito in Sao Paulo,
Sagarika Jaisinghani and Ambar Warrick in Bengaluru; Editing by
David Gregorio)
  
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