May 9, 2019 / 2:50 PM / 2 months ago

EMERGING MARKETS-Latam stocks, currencies slide after Trump warns on U.S.-China trade deal

    May 9 (Reuters) - Latin American stocks and currencies slid
on Thursday after U.S. President Donald Trump warned that a
trade deal with China was in serious danger, pushing investors
away from riskier assets.
    Trump has said that tariffs on Chinese goods worth $200
billion would rise beginning Friday if an agreement is not
reached.
    China has reportedly asked the United States to meet 
halfway to salvage a deal that would end their protracted trade
war that has roiled financial markets since last year.

    MSCI's index of Latin American stocks fell
1.5 percent with Brazil's Bovespa leading losses, while
Colombia's IGBC index was the only gainer in the region.
 
    Sao Paulo-traded stocks dropped 1.4 percent with oil
company Petroleo Brasileiro falling nearly 2 percent.
The company is expected to launch a secondary share offering on
May 24.
    Azul, Brazil's third largest airline, was off 2
percent in U.S.-trading as higher operating costs sent
first-quarter profits down 20 percent.
    The real was the biggest loser among regional
currencies after Brazil's central bank kept its benchmark
interest rate on hold at a record-low 6.50 percent on Wednesday
in view of inflationary risks.
    "We believe that the central bank will only start
considering eventual rate cuts after concrete signs of passing 
effective pension reform in Congress, " said Mauricio Oreng,
senior Brazil strategist at Rabobank in a note.
    Mexican stocks fell for a 13th straight session while
the peso weakened on lower oil prices. 
    Chile's peso fell to its lowest since the start of
the year, tracking a dip in the price of copper, the
country's top export, while Peru's sol was off 0.4
percent. 
    Central banks from Chile and Peru will release monetary
policy decisions later in the day, with analysts expecting
bankers in both countries to hold rates.     

    Key Latin American stock indexes and currencies at 1420 GMT
    
    
 Stock indexes                        daily %    YTD %
                             Latest    change   change
 MSCI Emerging Markets       1024.94    -2.47     8.83
                                               
 MSCI LatAm                  2643.07     -2.2     5.32
                                               
 Brazil Bovespa             94316.44    -1.34     7.32
                                               
 Mexico IPC                 42830.45    -1.34     2.86
                                               
 Chile IPSA                  5019.27    -0.81    -0.81
                                               
 Argentina MerVal           33571.15    -0.61    10.82
                                               
 Colombia IGBC              12505.17      0.1    12.21
                                               
                                                      
 Currencies                           daily %    YTD %
                                       change   change
                              Latest           
 Brazil real                  3.9688    -0.92   -16.52
                                               
 Mexico peso                 19.2500    -0.88     2.33
                                               
 Chile peso                    686.3    -0.31   -10.44
                                               
 Colombia peso               3289.88     0.05    -9.36
 Peru sol                      3.323    -0.21    -2.59
                                               
 Argentina peso              45.6800    -1.16   -59.28
 (interbank)                                   
                                               
 

 (Reporting by Agamoni Ghosh; Editing by Jeffrey Benkoe)
  
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