July 25, 2018 / 3:43 PM / 5 months ago

EMERGING MARKETS-LatAm currencies rise as Trump-Juncker jitters hit dollar

    SAO PAULO, July 25 (Reuters) - All major Latin American
currencies rose against the dollar for a second straight day on
Wednesday, as market jitters over an impending meeting between
U.S. President Donald Trump and EU Commission President
Jean-Claude Juncker put pressure on the greenback.
    Trump, who is set to meet today with Juncker in Washington,
has already set a pessimistic tone, saying in a tweet that the
European Union should drop all tariffs, barriers and subsidies,
but adding it will not do so.
    Adding to current trade tensions, Trump said on Wednesday
that China was targeting U.S. farmers in a "vicious" way.

    That helped send the dollar down against various
developed and emerging market currencies, with Latin America
being no exception.
    The Mexican, Argentine, and Chilean
pesos were up 0.37 percent, 0.7 percent, and 0.88
percent, respectively, in mid-day trade. 
    Brazil's real currency was the biggest gainer,
climbing some 1.05 percent, boosted by corporate earnings and
domestic politics.
    The support of market-friendly centrist Geraldo Alckmin by
the broad-based Centrao coalition has calmed traders in recent
days, even as he has failed to gain traction in the polls.

    "Alckmin needs to take off in the polls. But, for now, the
support of the Centrao has helped the dollar fall (against the
real)," said Jose Faria Junior, director of Sao Paulo-based
Wagner Investimentos.
    Brazil's benchmark Bovespa index was also up on
Wednesday, climbing 0.24 percent largely on positive corporate
results.
    Shares of GPA, one of Brazil's largest retailers,
jumped 5.3 percent, their biggest intraday gain since February,
after the company posted solid second-quarter results and
affirmed its commitment to selling its electronics unit, Via
Varejo SA.
    Banco Santander Brasil SA climbed some 6 percent
after the company beat quarterly profit estimates.
    Those two stocks alone accounted for well over half of the
Bovespa's gain.
    
Key Latin American stock indexes and currencies at 1500 GMT:
    
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets         1086.89       0.6     -6.74
                                                  
 MSCI LatAm                    2717.92      0.86     -4.71
                                                  
 Brazil Bovespa               79341.88      0.24      3.85
                                                  
 Mexico IPC                   49725.49      0.53      0.75
                                                  
 Chile IPSA                    5443.52     -0.12     -2.18
                                                  
 Chile IGPA                   27415.93      -0.1     -2.02
                                                  
 Argentina MerVal             28562.17      1.02     -5.00
                                                  
 Colombia IGBC                12231.14      0.01      7.57
                                                  
 Venezuela IBC                96988.23     -0.65   7578.34
                                                  
                                                          
 Currencies                              daily %     YTD %
                                          change    change
                                Latest            
 Brazil real                    3.7034      1.05    -10.53
                                                  
 Mexico peso                   18.8100      0.37      4.73
                                                  
 Chile peso                     648.42      0.88     -5.21
                                                  
 Colombia peso                 2882.65      0.39      3.45
 Peru sol                        3.273      0.09     -1.10
                                                  
 Argentina peso                27.3100      0.70    -31.89
 (interbank)                                      
                                                  
 Argentina peso                  28.45      0.53    -32.41
 (parallel)                                       
                                                  
 
 (Reporting by Gram Slattery; Additional reporting by Claudia
Volante; Editing by Steve Orlofsky)
  
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