November 11, 2019 / 3:56 PM / 7 months ago

EMERGING MARKETS-Chile's peso leads Latam FX lower; stocks retreat

    By Susan Mathew
    Nov 11 (Reuters) - Chile's peso slumped on Monday and
currencies in Brazil and Mexico were mixed as a clutch of
political crises and uncertainty over a U.S.-China trade deal
dulled sentiment.
    Chile's peso weakened 1.4%, falling for the fourth
straight session and leading declines among Latam currencies.
    The currency has lost around 5% over the last three weeks
amid massive local protests, which among other demands, have
called for a revision to the Chilean constitution. The
government yielded to that demand on Sunday.
    In Bolivia, President Evo Morales stepped down after weeks
of protests over a disputed Oct. 20 election, as a report from
the Organization of American States revealed serious
irregularities in the ballot.
    For market participants, the unrest presents some buying
opportunity as those assets get cheaper, said Ed Al-Hussainy, a
senior currency analyst at Columbia Threadneedle.
    "There is going to be a catch-up in these markets as the
political uncertainties settle down in the next couple of
quarters," Al-Hussainy said. 
    Brazil's real traded 0.3% higher against a slightly
weaker dollar, while Mexico's peso, a weather vane for
trade sentiment, was near flat. Data on Monday showed Mexican
industrial output was largely unchanged in September compared
with August, but down 1.8% year-over-year.
    Broader market sentiment was dented by less-than-encouraging
comments from U.S. President Donald Trump regarding a trade deal
with China, as well as an escalation in political unrest in Hong
    Stocks in the region mostly fell, with Brazil shares
cutting some early losses to trade flat. Iron ore miner Vale
 and stakeholder Bradespar weighed on the
index after Vale narrowed its 2019 guidance for sales of iron
ore and pellets. 
    Chilean stocks fell more than 1%, while those in
Argentina moved higher.  
    Colombian markets were closed for a local holiday. 
    Key Latin American stock indexes and currencies at 1451 GMT:
   Stock indexes            Latest    Daily %
 MSCI Emerging Markets       1050.77    -1.32
 MSCI LatAm                  2726.94    -0.48
 Brazil Bovespa            107581.17    -0.04
 Mexico IPC                 43583.32    -0.27
 Chile IPSA                  4634.00    -1.21
 Argentina MerVal           34384.46    0.742
 Colombia IGBC              13321.29    -1.13
       Currencies           Latest    Daily %
 Brazil real                  4.1502     0.42
 Mexico peso                 19.0989    -0.01
 Chile peso                    754.5    -1.06
 Colombia peso                  3336     0.00
 Peru sol                     3.3608    -0.05
 Argentina peso              59.5000     0.01
 (Reporting by Susan Mathew in Bengaluru; Editing by Dan
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