November 7, 2019 / 7:14 PM / 15 days ago

EMERGING MARKETS-Latam stocks jump on trade progress; real dips on another flop oil auction

 (Updates prices; adds quote)
    By Agamoni Ghosh and Medha Singh
    Nov 7 (Reuters) - Latin American stocks rose on Thursday as
signs of progress in U.S.-China trade relations boosted risk
appetite, but Brazil's real fell, adding to its worst decline in
three months, after the country held a disappointing second
round of oil auctions. 
    China said on Thursday it agreed with the United States to
remove tariffs in phases, a pivotal first step in securing a
deal and ending a trade stand-off between the world's two
largest economies.   
    MSCI's index of Latin American stocks rose
for the first time in three sessions with all major stock
indexes climbing higher, barring Colombian stocks, which
fell marginally. 
    Brazil's Bovespa was up more than 1% helped by trade
optimism and a bout of positive earnings including Banco do
Brasil which reported better-than-expected
third-quarter results.
    Natura Cosmeticos jumped 7% after winning
regulatory approval for the purchase of the North American
company Avon.
    Brazil's real extended losses for a second day after
another disappointing round of oil auctions with major global
oil firms passing. The underwhelming response to the country's
biggest-ever oil auction has frustrated investors' expectations
as high prices and the dominant role of state-run oil company
Petrobras scared off global oil majors. 
    "While the disappointing oil auction suggests less
supportive short-term flow dynamics, the medium-term narrative
for Brazil remains constructive and BRL is one of our top EM
picks," analysts from Morgan Stanley said in a note.  
    Chile's peso fell 0.3%. Data showed the country's
export revenue plunged by nearly one-fifth to $5.3 billion in
October, in an early sign of a faltering economy amid the worst
unrest since the South American nation's return to democracy in
1990. 
    Colombia's and Mexico's peso strengthened
between 0.2% and 0.6% as crude prices rose above $62 a barrel on
hopes for a U.S.-China trade deal.
    The Peruvian sol was marginally lower ahead of a
central bank rate decision at 2100 GMT, with expectations rife
for a cut. 
    
  Latin American stock indexes and currencies at 13:54 GMT   
 Stock indexes                                daily % change
                           Latest            
 MSCI Emerging Markets              1075.33              0.6
                                             
 MSCI LatAm                         2803.08             0.59
                                             
 Brazil Bovespa                   109600.48             1.14
                                             
 Mexico IPC                        44176.71             0.82
                                             
 Chile IPSA                         4658.98              1.3
                                             
 Argentina MerVal                  35951.89            1.272
                                             
 Colombia IGBC                     13445.15            -0.29
                                             
                                                            
 Currencies                                   daily % change
                                     Latest  
 Brazil real                         4.0870            -0.15
                                             
 Mexico peso                        19.1133             0.14
                                             
 Chile peso                           742.3            -0.18
                                             
 Colombia peso                         3316             0.58
 Peru sol                             3.343            -0.12
                                             
 Argentina peso                     59.6000             0.10
 (interbank)                                 
                                             
 

 (Reporting by Agamoni Ghosh and Medha Singh
Editing by Leslie Adler)
  
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