June 27, 2018 / 3:17 PM / in 23 days

EMERGING MARKETS-LatAm currencies down on lingering trade concerns

    By Bruno Federowski
    BRASILIA, June 27 (Reuters) - Latin American currencies
weakened on Wednesday as concerns over escalating trade tensions
between the United States and China kept a lid on demand for
riskier assets.
    Worries that a full-blown trade war will break out between
Beijing and Washington continued to weigh on currencies and sent
Chinese stocks hurtling lower.
    That also pressured emerging market currencies, which
typically suffer at times of risk-aversion. The Chilean peso
 slipped 0.7 percent, while the Mexican peso
was down 0.1 percent.
    The Brazilian real continued to underperform, leading
losses with a 1.1 percent decline.
    Concerns over unpredictable presidential elections in
October, as well as the government's fiscal outlook have
battered the Brazilian currency, the second-worst performing
currency in Latin America this year behind only the Argentine
peso.
    A decision by a Supreme Court Justice ruling that all
privatizations must be approved by Congress also weighed on the
currency.
    "The market does not enjoy that kind of political
interference, it tends to curb dollar inflows" Mirae Asset head
of operations Pablo Spyer said.
    Shares of power utility Centrais Elétricas Brasileiras SA
, whose privatization is set to be a landmark of
President Michel Temer's administration, fell 3.2 percent.
    But the nation's benchmark Bovespa stock index was
up 0.6 percent, supported by rising shares of state-controlled
oil company Petróleo Brasileiro SA in the wake of
rising crude prices.
        
    Key Latin American stock indexes and currencies at 1425 GMT:
 Stock indexes                                daily %   YTD %
                                               change  change
                                   Latest              
 MSCI Emerging Markets               1055.43    -1.15   -7.83
 MSCI LatAm                          2441.28    -0.78     -13
 Brazil Bovespa                     71831.25      0.6   -5.98
 Mexico IPC                         46872.39    -0.08   -5.03
 Chile IPSA                          5309.58     0.32   -4.58
 Chile IGPA                         26931.01     0.26   -3.75
 Argentina MerVal                   28016.73     -1.6   -6.81
 Colombia IGBC                      12238.14     0.76    7.63
                                                             
 Currencies                                   daily %   YTD %
                                               change  change
                                      Latest           
 Brazil real                          3.8364    -1.05  -13.64
 Mexico peso                         19.9800    -0.13   -1.41
 Chile peso                            645.1    -0.68   -4.72
 Colombia peso                       2918.65     0.37    2.17
 Peru sol                               3.27    -0.09   -1.01
 Argentina peso (interbank)          27.2800    -0.62  -31.82
                                                       
 Argentina peso (parallel)                28     0.00  -31.32
                                                       
 
 (Reporting by Bruno Federowski; Editing by David Gregorio)
  
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