June 29, 2018 / 8:16 PM / 5 months ago

EMERGING MARKETS-Argentina peso resumes slide, other Latam equities rise

    BUENOS AIRES/SAO PAULO, June 29 (Reuters) - After a week of
relatively stability, the Argentine peso slid more than 2.5
percent on Friday, as an economic crisis marked by high
inflation, wobbly growth and an outflow of capital began to bite
again.
    Argentina's peso, like currencies in other emerging markets,
has come under pressure from a flight of capital to safe havens
in the wake of a string of interest rate hikes by the U.S.
Federal Reserve. Argentina's annual inflation rate is running at
over 25 percent.
    The central bank sold $300 million on Friday to support the
currency.
    Equities rose elsewhere across the region. Mexico's S&P/BMV
IPC index rose more than 1 percent in the last session before
elections on Sunday, when voters are expected to elect leftist
former Mexico City Mayor Andres Manuel Lopez Obrador to be
President.    
    In Brazil, the Bovespa rose almost 1 percent as
solid gains on Wall Street and relative political calm helped
lure investors back into local stocks, many of which have fallen
dramatically in recent weeks.
    The index fell almost 15 percent in the second quarter
alone. Domestic issues, such as a highly uncertain presidential
election scheduled for October, have also weighed on domestic
equities.
    But in recent weeks, investors have often jumped back into
Brazilian stocks during times of geopolitical calm, amid bets
that some sectors are oversold. 
    Friday's rally was also spurred by traders looking to boost
their portfolios before the end of the second quarter, some
market participants said.
    
    Latin American stock indexes and currencies at 1940 GMT:
      
 Stock indexes                              daily    YTD %
                                                %   change
                                Latest     change  
 MSCI Emerging Markets            1067.97    2.03    -9.65
                                                   
 MSCI LatAm                       2450.77    0.55   -13.82
 Brazil Bovespa                  72441.76    0.94    -5.18
 Mexico IPC                      47627.82    1.27    -3.50
 Chile IPSA                       5283.52    0.49    -5.05
 Chile IGPA                      26768.71    0.45    -4.33
 Argentina MerVal                26287.31   -1.87   -12.57
 Colombia IGBC                   12414.61     0.8     9.18
 Venezuela IBC                   92932.01    8.05  7257.22
                                                          
 Currencies                                 daily    YTD %
                                                %   change
                                   Latest  change  
 Brazil real                       3.8757   -0.54   -14.51
                                                   
 Mexico peso                      19.8800   -0.86    -0.91
                                                   
 Chile peso                        653.05   -0.60    -5.88
 Colombia peso                    2929.25    0.55     1.80
 Peru sol                           3.276    0.00    -1.19
                                                   
 Argentina peso (interbank)       28.8500   -2.53   -35.53
                                                   
 Argentina peso (parallel)          28.85   -2.43   -33.34
                                                   
 
    
  

 (Reporting by Luc Cohen in Buenos Aires, Gram Slattery in Sao
Paulo; Additional reporting by Flavia Bohone; Editing by Susan
Thomas and Grant McCool)
  
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