May 24, 2018 / 9:33 PM / 7 months ago

EMERGING MARKETS-Latam markets sink on global uncertainty, Petrobras shares slide

 (Updates prices, adds details on Mexico stocks and peso)
    By Bruno Federowski
    BRASILIA, May 24 (Reuters) - Brazilian stocks fell for a
second day on Thursday, pressured by national oil company
Petrobras, while other Latin American markets were also down
after the United States canceled a North Korea summit and
proposed exploring auto tariffs.
    Brazil's Petroleo Brasileiro SA, better known as
Petrobras, saw shares plummet more than 13 percent after
announcing a temporary diesel price cut, contributing to the
benchmark Bovespa index's 1 percent fall.
    Brazilian truckers on Thursday kept up protests against high
prices despite the diesel announcement, crippling highways
nationwide. The truckers say they will only end
protests once the Senate votes on diesel tax cuts. Brazil's
lower house of Congress voted on Wednesday to eliminate certain
diesel taxes.
    In Mexico, the benchmark IPC index lost ground after two
positive sessions, falling 0.76 percent, amid a wave of risk
aversion after U.S. President Donald Trump called off a historic
meeting with North Korean leader Kim Jong Un.
Markets across Latin America also fell. 
    Mexico's peso dipped 0.21 percent after the Trump
administration said it studying higher U.S. tariffs on auto
imports.
    Mexico is a major car and truck supplier to the United
States and the announcement frustrated hopes that talks to
renegotiate the North American Free Trade Agreement (NAFTA)
could conclude quickly.
    Meanwhile, Canadian Prime Minister Justin Trudeau said on
Thursday that Washington was using the possible auto tariffs to
pressure its NAFTA trade partners. 
    "We know that this is very much linked to ongoing
negotiations around moving forward on NAFTA," he said.
    In Argentina, the benchmark Merval index slipped 2.4
percent, following days of financial volatility.
                
    Key Latin American stock indexes and currencies at 1944 GMT:
    
 Stock indexes          Latest    daily % change  YTD % change
 MSCI Emerging           1135.04            0.17         -2.19
 Markets                                          
 MSCI LatAm              2684.72           -0.76         -4.34
                                                  
 Brazil Bovespa         80066.33           -0.99          4.80
                                                  
 Mexico IPC             45427.72           -0.76         -7.96
                                                  
 Chile IPSA              5571.62           -0.73          0.13
                                                  
 Chile IGPA             28140.03           -0.92          0.57
                                                  
 Argentina MerVal       29508.65            -2.4         -1.85
                                                  
 Colombia IGBC          12095.84            0.34          6.38
                                                  
 Venezuela IBC          27237.94           10.13       2056.37
                                                  
                                                              
 Currencies             Latest    daily % change  YTD % change
                                                  
                                                  
 Brazil real              3.6479           -0.66         -9.17
                                                  
 Mexico peso             19.6700           -0.21          0.15
                                                  
 Chile peso                626.8           -0.72         -1.94
                                                  
 Colombia peso            2852.3            0.73          4.55
                                                  
 Peru sol                  3.266           -0.06         -0.89
                                                  
 Argentina peso          24.5750           -0.35        -24.31
 (interbank)                                      
                                                  
 Argentina peso             25.5           -0.39        -24.59
 (parallel)                                       
                                                  
    

 (Additional reporting by Paula Arend Laier in Sao Paulo and
Daina Beth Solomon in Mexico City)
  
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