September 19, 2018 / 8:51 PM / a year ago

EMERGING MARKETS-LatAm currencies up after latest U.S.-China trade tariffs

 (Updates prices)
    By Bruno Federowski
    BRASILIA, Sept 19 (Reuters) - Latin American currencies on
Wednesday firmed slightly as investors saw the latest round of
U.S-China trade tariffs as less aggressive than expected,
boosting appetite for risky assets.
    The Brazilian real strengthened 0.33 percent, and the
Mexican peso firmed 0.10 percent.
    The tariffs "did not have the expected impact, and the
market is now focused on the ongoing negotiations" between
Canada and the United States, said Alfonso Esparza, an analyst
    Longer-than-expected negotiations to revamp the North
American Free Trade Agreement (NAFTA) have weighed on the peso
in recent months, but the currency has since recovered after the
United States and Mexico reached a deal. 
    The benchmark Mexican stock index was down 0.19
percent in afternoon trading, showing that investors remain
attentive to the negotiations. The talks have stalled once again
amid disagreement between Canadian and U.S. negotiators. 
    U.S. Chamber of Commerce President Tom Donohue said on
Wednesday that the Trump administration could still avoid a
full-blown global trade war that erodes business confidence if
it seals a trilateral NAFTA trade deal and makes progress on
European trade issues in the coming weeks.
    The Brazilian real was up after initially weakening
at the open. The currency has been battered recently by concerns
over the presidential elections.
    A voter intention survey for next month's vote showed
leftist Fernando Haddad gaining strength, raising concern among
traders who see him as less likely to cut government spending
and pursue structural reforms than far-right lawmaker Jair
Bolsonaro, who has led polls.
    Bolsonaro and Haddad are in a technical tie in a likely
second-round runoff vote.

    Latin American stock indexes and currencies at 19:53 GMT:
 Stock indexes                                 daily %    YTD %
                                                change   change
 MSCI Emerging Markets                1031.58     1.16   -11.97
 MSCI LatAm                           2500.79        0   -11.58
 Brazil Bovespa                      77985.41    -0.42     2.07
 Mexico IPC                          49567.71    -0.19     0.43
 Argentina MerVal                    32990.48     2.75     9.73
 Colombia IGBC                       12331.93    -0.22     8.45
 Currencies                                    daily %    YTD %
                                                change   change
 Brazil real                           4.1276     0.33   -19.73
 Mexico peso                          18.7915     0.10     4.83
 Peru sol                               3.303     0.09    -2.00
 Argentina peso (interbank)           39.3500     1.14   -52.73
 Argentina peso (parallel)               38.5     3.25   -50.05
 Chile peso                             686.8     0.00  -10.51
 Colombia peso                        3027.45    -0.50  -1.50
 (Reporting by Bruno Federowski; Additional reporting by Miguel
Gutierrez and Julia Love in Mexico City; editing by Jonathan
Oatis and Grant McCool)
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