September 24, 2019 / 7:45 PM / 25 days ago

EMERGING MARKETS-Latam stocks slip on political, economic worries

 (New throughout, updates prices)
    By Susan Mathew
    Sept 24 (Reuters) - Latin American stocks slipped on
Tuesday, in line with a move lower on Wall Street as political
uncertainty in the United States tied in with further evidence
of slowing global growth  to dent sentiment.
    Stocks in Brazil and Mexico both lost 0.7%,
while those in Colombia fell 0.3%. Chile shares
 gave up about half a percent. 
    U.S. stocks declined as calls for impeachment of President
Donald Trump gained momentum after U.S. Representative John
Lewis became one of the most senior Democrat leaders to join the
cause.
    Disappointing U.S. consumer confidence data, meanwhile, was
the latest in a raft of recent poor economic data from around
the globe that added to worries over the impact of prolonged
Sino-U.S. trade war and a possible slip into recession. 
    Argentine shares lost more than 4% in moves that
have become regular for the county's markets since they were
thrust into crisis mid last month when President Mauricio
Macri's shock loss to opposition in presidential primaries, sent
the currency and stocks into a tailspin.

    Among regional currencies, the Mexican and Colombian
pesos made modest gains against a weaker dollar, while
Brazil's real lost for a third straight session.
    Gradual economic growth and persistently low inflation in
Brazil are likely to pave the way for a further reduction in
interest rates, the country's central bank indicated on Tuesday,
pointing also to deteriorating global economic conditions.

    The bank had cut rates by half a percentage point to a fresh
record low of 5.50% at this month's meeting. 
    Major central banks around the globe such as the U.S.
Federal Reserve and the European Central Bank have taken a more
accommodative stance to support growth.
    Emerging market central banks have also adopted a similar
path. The Mexican central bank's interest rate decision is due
on Thursday, with consensus expectations being for a 25 basis
points cut for a second time this year.
    "(The Mexican peso) may be vulnerable to easing should
Banxico's tone sound overly dovish," said Sacha Tihanyi deputy
head of emerging markets strategy at TD Securities. 
    "We see some risk that the market's pricing trajectory for
Banxico may be overly aggressive in the near term, but this
remains dependent on the flexibility provided by the Fed's
easing path."
           
    Key Latin American stock indexes and currencies at 1929 GMT:
    Stock indexes             Latest    Daily %
                                         change
 MSCI Emerging Markets         1011.32     -0.39
                                        
 MSCI LatAm                    2658.81     -0.87
                                        
 Brazil Bovespa              103764.44     -0.73
                                        
 Mexico IPC                   43198.84      -0.7
                                        
 Chile IPSA                    5001.05     -0.48
                                        
 Argentina MerVal             27812.90    -4.406
                                        
 Colombia IGBC                12953.14     -0.31
                                        
                                                
       Currencies             Latest    Daily %
                                         change
 Brazil real                    4.1716     -0.03
                                        
 Mexico peso                   19.4570      0.06
                                        
 Chile peso                     723.31     -0.35
                                        
 Colombia peso                 3433.75      0.10
 Peru sol                        3.341      0.42
                                        
 Argentina peso                56.8800      0.09
 (interbank)                            
                                        
 
 (Reporting by Susan Mathew in Bengaluru;
Editing by Alistair Bell)
  
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