July 2, 2019 / 2:40 PM / 19 days ago

EMERGING MARKETS-Mexican peso up as Trump rules out tariffs; broader Latam FX weakens

    July 2 (Reuters) - Most Latin American currencies dipped on
Tuesday as optimism around U.S.-China trade talks faded, while
the Mexican peso gained on reports U.S. President Donald Trump
had held off  imposing tariffs on Mexico.
    The peso jumped about 0.4% to 19.07 per dollar after
media reports here
 said Trump praised Mexico's efforts to curb Central American
migrants crossing into the United States and added that tariffs
on the Latin American country's imports were off the table.
    Mexican President Andres Manuel Lopez Obrador on Tuesday
thanked Trump for holding off on tariffs.
    CI Banco analysts pinned the peso's appreciation on Trump's
comments and expect the currency to trade between 19.02 and
19.15 to the dollar during the session.
    The Brazilian real fell about 0.6% following a global
surge in risk assets on Monday after the United States and China
agreed to get back to negotiating their long-drawn trade
dispute, which has roiled for financial markets.
    The tone, however, changed on Tuesday as Trump said any deal
would need to be somewhat tilted in favor of the United States,
arguing that China has long had a trade advantage.
    In Brazil, investors are awaiting lawmaker Samuel Moreira's 
presentation of proposed changes to the government's pension
reform bill in a congressional committee later in the day.
    "We're optimistic on approval by the committee this week,
though less certain about a plenary vote this month," Citi
analysts wrote in a note.
    The Colombian, the Chilean and the Argentine
pesos all dipped slightly.
    Brazil's main Bovespa stock index fell half a
percent, dragged down by banking shares. The MSCI index of Latin
American stocks was down more than 1 percent. 

    Latin American stock indexes and currencies at 1401 GMT
    
 Stock indexes                       daily %
                            Latest    change
 MSCI Emerging Markets      1062.90    -0.11
                                     
 MSCI LatAm                 2829.88    -1.29
                                     
 Brazil Bovespa           100786.38    -0.55
                                     
 Mexico IPC                43482.68      0.1
                                     
 Chile IPSA                       -        -
                                     
 Argentina MerVal                 -        -
                                     
 Colombia IGBC             12605.08    -0.01
                                     
                                            
 Currencies                          daily %
                                      change
                             Latest  
 Brazil real                 3.8673    -0.64
                                     
 Mexico peso                19.0760     0.21
                                     
 Chile peso                   680.6    -0.15
                                     
 Colombia peso              3206.53    -0.16
                                     
 Peru sol                         -        -
                                     
 Argentina peso             42.5900    -0.52
 (interbank)                         
                                     
 

 (Reporting by Sruthi Shankar and Susan Mathew in Bengaluru)
  
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