August 5, 2019 / 2:12 PM / 20 days ago

EMERGING MARKETS-Latam markets join global sell-off as yuan slide spooks investors

    * Latin American stocks at two-month lows
    * CLP falls to 3-yr low on lower copper prices 
    * Peru central bank meeting later this week    

    Aug 5 (Reuters) - Latin American assets tumbled on Monday as
escalation of U.S.-China trade tensions pushed investors to pile
on to safe-heavens like government bonds and gold, while the
yuan fell to its lowest levels in over a decade.  
    The MSCI index of Latin American currencies
fell over 1%, adding to a 2.3% slide through last week, its
worst in 2019, after U.S. President Donald Trump announced a 10%
tariff hike on the remaining $300 billion worth of Chinese
imports.
    China's yuan, a key component of the emerging market
currency index, fell through the key level of 7
per dollar for the first time in a decade, suggesting Beijing
might be willing to tolerate more currency weakness, which may
further inflame the trade conflict with Washington.
    Currencies in the region followed their emerging market
counterparts with Colombia's peso falling the most, down
2.2%. The real and Mexico's peso slid 1.5% each.
    Chile's peso which tracks copper prices fell to an
over three-year low as the yuan's slide made it expensive for
the world's biggest copper consumer, China to buy
dollar-denominated metals. 
    Sao Paulo-traded stocks fell nearly 2% tracking a
larger global sell-off in equities, while shares on Mexico's IPC
index lost 1%.
    The Peruvian sol was the only currency in the region
that gained against the dollar ahead of an interest rate
decision later this week. 
    The country's central bank said last month it was looking at
the possibility of cutting or maintaining the benchmark interest
rate depending on macroeconomic data it receives.
   
  Key Latin American stock indexes and currencies at 1400 GMT   
 Stock indexes                                     daily %
                             Latest                 change
 MSCI Emerging Markets               974.51          -2.91
                                             
 MSCI LatAm                         2680.41          -2.94
                                             
 Brazil Bovespa                   100899.01          -1.73
                                             
 Mexico IPC                        39531.52          -1.12
                                             
 Chile IPSA                         4818.01          -1.38
                                             
 Argentina MerVal                         -              -
                                             
 Colombia IGBC                     12446.41          -0.86
                                             
                                                          
 Currencies                                        daily %
                                     Latest         change
 Brazil real                         3.9408          -1.27
                                             
 Mexico peso                        19.5962          -1.52
                                             
 Chile peso                           723.6          -1.53
                                             
 Colombia peso                      3458.49          -2.20
 Peru sol                             3.355           0.10
                                             
 Argentina peso (interbank)         45.3800          -1.56
                                             
 

 (Reporting by Agamoni Ghosh in Bengaluru
Editing by Nick Zieminski)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below