February 14, 2019 / 2:38 PM / 10 months ago

EMERGING MARKETS-Brazil stocks fall over pension reform anxiety; Latam FX dips

    Feb 14 (Reuters) - Brazilian stocks fell on Thursday as
investors were cautious on pension reform progress and markets
awaited further hints from tariff talks between the United
States and China.
    A weaker dollar did little to help Latin American
currencies, which fell. 
    Stocks on the Bovespa fell 0.7 percent led by
declines in financials as investors eyed a meeting between
President Jair Bolsonaro and Economy Minister Paulo Guedes where
they are expected to discuss the pension reform.
    "God willing, we will make a decision tomorrow," said
Bolsonaro in a TV interview late on Wednesday.
    Markets however, remained wary as pension reforms, expected
to bring down Brazil's mounting fiscal deficit, have been
delayed for months. 
    A possible decision by Bolsonaro on Thursday may not be
enough to ease the anxiety and stop the volatility that
permeates the market in relation to the Social Security, said
the executive director of the NGO Brokerage, Sidnei Nehme.
    Losses on the index were led by financials, led by Bradesco
 and Itausa Investimentos Itau.
    State-controlled lender Banco do Brasil jumped 
1.8 percent after it said it is exploring potential sale of
Banco Votorantim, an entity it holds jointly with Grupo
Votorantim. 
    Stocks on Chile's IPSA index were marginally
higher led by utility firm AES Gener and real estate
company Parque Arauco. 
    In currencies, Brazil's real slid for a second
consecutive day, while Chile's peso fell to over two-week
lows as the price of copper, the main export of the country,
rebound.
    Mexico's peso rose marginally but remained subdued.
Bank Of America Merrill Lynch's LatAm Fund Manager's recent
survey showed 68 pct of poll participants believe the Latin
American country will lose its investment-grade rating in the
coming years, notably after the downgrade of state oil firm
Pemex.
    The survey also highlighted how decisions by the government
of leftist President Andres Manuel Lopez Obrador are seen as
biggest tail risk for Mexico. 

    Latin American stock indexes and currencies at 1415 GMT
    
 Stock indexes                             daily %
                               Latest       change
 MSCI Emerging Markets           1036.85     -0.48
                                          
 MSCI LatAm                      2790.90     -1.19
                                          
 Brazil Bovespa                 95501.93     -0.69
                                          
 Mexico IPC                            -         -
                                          
 Chile IPSA                      5392.35      0.11
                                          
 Argentina MerVal                      -         -
                                          
 Colombia IGBC                         -         -
                                          
                                                  
 Currencies                                daily %
                                            change
                                  Latest  
 Brazil real                      3.7864     -0.95
                                          
 Mexico peso                     19.4170      0.05
                                          
 Chile peso                       665.66     -0.39
                                          
 Colombia peso                         -         -
 Peru sol                              -         -
                                          
 Argentina peso (interbank)            -         -
                                          
 
    

 (Reporting by Agamoni Ghosh; Additional reporting by Camila
Moreira in Sao Paulo; editing by Grant McCool)
  
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