September 10, 2018 / 5:03 PM / 9 days ago

EMERGING MARKETS-Argentine peso down on doubts over intervention, IMF talks

    SAO PAULO/BUENOS AIRES, Sept 10 (Reuters) - Argentine
equities and the peso both lost ground on Monday as analysts
said intervention in the foreign exchange market by the nation's
central bank may prove less successful than originally hoped.
    Traders are keeping an eye on ongoing talks between the
Argentine government and the International Monetary Fund. The
multilateral lender is contemplating measures to strengthen its
$50 billion financing line with the nation after a recent rout
in the peso, which has fallen some 50 percent against the dollar
year-to-date.
    The central bank has auctioned off hundreds of millions of
dollars of reserves in recent days in a bid to stem losses.

    "With the IMF agreement, it's not very clear how far the
central bank is willing to intervene, and it seems that the
(reserve) auctions are not bringing the results that the bank
wants," said Matias Roig, a senior financial adviser at
Portfolio Personal.
    The peso had fallen 1.26 percent against the
dollar in afternoon trade, while the benchmark Merval equities
index was off 0.85 percent. The Argentine currency has
risen or fallen at least 1 percent against the dollar every day
for the last two weeks.
    Across Latin America, equities markets were mixed after U.S.
President Donald Trump on Friday threatened to slap tariffs on
some $267 billion of Chinese goods, while political volatility
in Brazil, where right-wing front-runner Jair Bolsonaro is
recovering from a serious stabbing incident, also weighed.

    Mexico's benchmark IPC index fell 0.36 percent, while
Brazil's Bovespa climbed 0.2 percent after spending the
morning slightly in the red.
    The index was heavily supported by shares of state-run oil
company Petroleo Brasileiro SA, whose preferred and
common shares both rose over 2 percent on Monday as oil prices
rose.

Key Latin American stock indexes and currencies at 1620 GMT:
    
 Stock indexes                             daily %     YTD %
                             Latest         change    change
 MSCI Emerging Markets         1022.98        0.46    -11.69
                                                    
 MSCI LatAm                    2453.65        1.78    -13.24
                                                    
 Brazil Bovespa               76568.98         0.2      0.22
                                                    
 Mexico IPC                   48795.08       -0.36     -1.13
                                                    
 Argentina MerVal             29557.75       -0.85     -1.69
                                                    
 Colombia IGBC                11951.90       -0.02      5.11
                                                    
 Venezuela IBC               339429.12       13.18  26771.85
                                                    
                                                            
 Currencies                                daily %     YTD %
                                            change    change
                                Latest              
 Brazil real                    4.1103       -0.16    -19.39
                                                    
 Mexico peso               19.328          0.07         
                                                    
 Chile peso                      695.3       -0.65    -11.60
                                                    
 Colombia peso                 3075.24       -0.61     -3.03
 Peru sol                        3.328       -0.06     -2.73
                                                    
 Argentina peso                37.4500       -1.26    -50.33
 (interbank)                                        
                                                    
 Argentina peso                     37       -1.35    -48.03
 (parallel)                                         
                                                    
 

 (Reporting by Gram Slattery and Walter Bianchi; Editing by Dan
Grebler)
  
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