September 10, 2019 / 3:04 PM / 2 months ago

EMERGING MARKETS-Brazil's real slides on weak inflation outlook; Latam stocks fall

    Sept 10 (Reuters) - Latin American currencies slid lower on
Tuesday, led by the Brazilian real after the government cut its
2019 annual inflation forecast, pointing to further chances of
monetary easing in the region's largest economy. 
    The real shed about 0.6%, weighing on MSCI's index of
Latin American currencies after the government
cut its 2019 inflation forecast to 3.6% from 3.8%. It raised its
growth outlook slightly.
    Central bank chief Roberto Campos Neto previously had
flagged more room for monetary easing if inflation remained
tepid.
    The Mexican peso outperformed its regional peers,
edging up 0.1%. Finance Minister Arturo Herrera said state-oil
firm Pemex is exploring opening a bidding process for
public-private contracts in order to ensure the debt-laden firm
has enough money to invest and manage its debt
profile.
    Chile's peso was marginally lower as prices of
copper, the country's main export, drifted lower.
    Latin American stock indices were mostly
lower, in line with the broader emerging markets as investors
stayed away from riskier assets ahead of key central bank
meetings.
  Investors expect an easing package from the European Central
Bank at its monetary policy meeting on Thursday, and a likely
quarter-point interest rate cut next week from the Federal
Reserve.      
    Sao Paulo-listed stocks fell 0.6% after four
straight sessions of gains, with financials leading declines.   
   Retailers Magazine Luiza, Via Varejo
and B2W fell between 4.5% and 5.6% after U.S.
internet marketplace Amazon.com Inc said it would
launch its Prime subscription service in the country.
 
    Stocks in Mexico and Chile fell between
0.1% and 0.4%, while those in Colombia moved marginally
higher.
    
  Latin American stock indexes and currencies at 14:36 GMT
    
 Stock indexes                                  daily %
                           Latest                change
 MSCI Emerging Markets             1006.58         -0.4
                                            
 MSCI LatAm                        2649.80        -0.86
                                            
 Brazil Bovespa                  102756.02        -0.41
                                            
 Mexico IPC                       42524.80        -0.32
                                            
 Chile IPSA                        4854.72        -0.12
                                            
 Argentina MerVal                        -            -
                                            
 Colombia IGBC                    12790.60         0.11
                                            
                                                       
 Currencies                                     daily %
                                    Latest       change
 Brazil real                        4.1214        -0.60
                                            
 Mexico peso                       19.5690         0.10
                                            
 Chile peso                         714.51         0.00
                                            
 Colombia peso                     3379.43        -0.32
 Peru sol                           3.3508        -0.05
                                            
 Argentina peso                    56.1000        -0.14
 (interbank)                                
                                            
 
     

 (Reporting by Ambar Warrick and Agamoni Ghosh in Bengaluru;
Editing by Dan Grebler)
  
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