September 26, 2019 / 2:42 PM / 19 days ago

EMERGING MARKETS-Trade optimism lifts Latam stocks, eyes on Banxico meet

    By Agamoni Ghosh
    Sept 26 (Reuters) - A revival in U.S.-China trade optimism
pulled stocks higher in Latin America on Thursday, while
Mexico's peso weakened to lag its regional peers ahead of the
central bank's monetary policy meeting. 
    China said it was in close communication with the United
States and was preparing to make progress in their trade talks
in October, soothing investor concerns.  
    MSCI's index of Latin American stocks rose
0.7%, in line with global moves in equities. 
    Sao Paulo-listed shares led gains, while stocks in
Colombia lagged as shares of oil firm Ecopetrol SA
 fell 1% on the back of lower oil prices.  
    The real climbed 0.3% after the central bank raised
its 2019 economic growth forecast to 0.9% from 0.8%, adding that
the pace of growth will likely accelerate to 1.8% next year. 
    Mexico's peso fell 0.2% to underperform its regional
peers ahead of Banxico's central bank monetary policy meeting on
Thursday where officials are expected to cut interest rates by
25 basis points.
    Further, data showed economic activity fell slightly in July
compared to the previous month in Latin America's second-largest
economy reviving fears that the economy may approach a recession
after stagnating between April and June. 
    "A cut today should be fully expected, as inflation has
continued to surprise to the downside," said Morgan Stanley
analysts in a note.
    "While the latest cut was delivered through a 4-1 vote, we
would expect today's cut to be unanimous." 
    Chile's peso was mostly flat, in tandem with prices
of copper, while stocks in the SPIPSA index
rose 0.1% higher.    

 Latin American stock indexes and currencies at 14:31 GMT
 Stock indexes                                   daily %
                           Latest                 change
 MSCI Emerging Markets            1009.08           0.35
                                           
 MSCI LatAm                       2679.77           0.54
                                           
 Brazil Bovespa                 104643.98           0.26
                                           
 Mexico IPC                      42913.90           0.03
                                           
 Chile IPSA                       5010.21           0.08
                                           
 Argentina MerVal                28589.22          1.336
                                           
 Colombia IGBC                   12945.86          -0.48
                                           
                                                        
 Currencies                                      daily %
                                   Latest         change
 Brazil real                       4.1439           0.21
                                           
 Mexico peso                      19.6221          -0.30
                                           
 Chile peso                         726.4           0.01
                                           
 Colombia peso                    3428.81           0.07
 Peru sol                          3.3558          -0.17
                                           
 Argentina peso                   57.1700           0.05
 (interbank)                               
 

 (Reporting by Agamoni Ghosh
Editing by Chizu Nomiyama)
  
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