February 7, 2018 / 10:30 PM / a year ago

EMERGING MARKETS-Brazil, Mexico stocks fall amid market volatility

 (Adds comments from analyst)
    SAO PAULO, Feb 7 (Reuters) - Mexican stocks fell again on
Wednesday in the wake of the recent wild swings on Wall Street,
and Brazilian equities were dragged down by shares of Petrobas.
    Brazil's benchmark Bovespa index led losses in the
region, down 1.34 percent in afternoon trade. Among the biggest
drags on the exchange were shares of Petróleo Brasileiro SA,
which have fallen amid a decline in oil prices. 
    Mexico's IPC fell 0.58 percent, extending losses from
Tuesday when markets opened to the news of Wall Street's biggest
sell-off in six years. Analysts said they were also discouraged
by early reports from companies during earnings season. 
    UBS Wealth Management investment strategist Ronaldo Patah
said the Brazilian market would continue to be volatile until
new U.S. economic data is released, particularly regarding
inflation. Nonetheless, he remains bullish about the market.
    "At the start, we view (the declines) as a correction, an
opportunity to buy," he said. 
    Among currency markets, the Chilean peso rose 0.11
percent after the central bank posted a January trade surplus of
$1.21 billion, up 7 percent from the previous year as prices for
key export copper improved.
    The Mexican, Colombian and Argentine
 peso currencies all slid slightly in the face of a
strengthening global dollar.
    "You had a significant move in the dollar index to above 90,
so if you're going to draw a direct line from emerging market
weakness it is certainly to dollar strength," said Art Hogan,
chief market strategist at Wunderlich Securities in New York.
    Key Latin American stock indexes and currencies at 2036 GMT:
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets         1172.45     -0.32      1.53
 MSCI LatAm                    3048.94     -0.97      8.87
 Brazil Bovespa               82766.73     -1.34      8.33
 Mexico IPC                   49020.85     -0.58     -0.68
 Chile IPSA                    5750.61      0.94      3.34
 Chile IGPA                   28953.98      0.81      3.48
 Argentina MerVal             31607.06     -0.05      5.13
 Colombia IGBC                11736.17     -0.21      3.21
 Venezuela IBC                 3200.14         0    153.35
 Currencies                              daily %     YTD %
                                          change    change
 Brazil real                    3.2711      0.14      1.29
 Mexico peso                   18.7350     -0.72      5.15
 Chile peso                     598.84      0.11      2.64
 Colombia peso                    2847     -0.64      4.74
 Peru sol                         3.25     -0.18     -0.40
 Argentina peso                19.6850     -0.48     -5.51
 Argentina peso                   19.8      0.45     -2.88
 (Reporting by Gram Slattery and Julia Love; additional
reporting by Sheky Espejo, Rodrigo Campos and Walter Bianchi;
Editing by Bernadette Baum and Tom Brown)
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