October 8, 2019 / 2:44 PM / 12 days ago

EMERGING MARKETS-Latam FX mixed, stocks slip as trade concerns weigh

    Oct 8 (Reuters) - Latin American currencies were mixed on
Tuesday with Brazil's real bouncing back from its steepest drop
in more than two weeks, while stock markets in the region
declined on fading hopes for progress in the upcoming U.S.-China
trade talks.
    Reports that the Trump administration was moving ahead with
discussions around possible curbs on capital flows into China
and Beijing would cut short the stay of its delegation by one
night kept investors nervous about the outcome of the trade
talks, scheduled for Oct. 10-11.
    The Brazilian real edged up 0.4% after shedding about
1.2% on Monday following a report Brazilian Economy Minister
Paulo Guedes would leave in February. Guedes later said there
was absolutely no basis for the reports.
    The main Bovepsa stock index slid 0.2%, extending
Monday's losses as heavyweight miner Vale and other
steel companies declined despite a rise in iron ore futures.
 
    Vale said it had paid 860 million reais ($210 million) in
emergency damages relating to the Brumadinho tailings dam
disaster.
    Countering those losses, shares in Eletrobras
jumped 4.5% after the state-run utility said it was discussing
with the government capitalization of 3.9 billion reais ($950
million) in advances received from the Treasury.
    If agreement is reached, the loans would become capital and
be removed from the company's debt load. 
    The Mexican peso edged 0.12% lower, while the Chilean
peso dropped 0.7% after domestic data showed consumer
prices were unchanged in September and annual inflation was at
the bottom of the central bank's target range as the country's 
all-important mining sector continues to lag.
    The Argentine peso was unchanged. President Mauricio
Macri announced a tax incentive proposal aimed at boosting
employment among young people on Monday, in a bid to gain ground
with a voter demographic that contributed to his poor showing in
an August primary.
    
    Key Latin American stock indexes and currencies at 1404 GMT:
    
        Stock indexes                  Latest       Daily %
                                                     change
 MSCI Emerging Markets                     994.06       -0.01
 MSCI LatAm                               2629.93       -0.74
 Brazil Bovespa                         100440.32       -0.13
 Mexico IPC                              42722.70       -0.53
 Chile IPSA                               5031.71       -0.38
 Argentina MerVal                               -           -
 Colombia IGBC                           12924.46        -0.4
                                                             
           Currencies                  Latest       Daily %
                                                     change
 Brazil real                               4.0869        0.39
 Mexico peso                              19.5888       -0.12
 Chile peso                                 722.5       -0.65
 Colombia peso                            3458.54       -0.31
 Peru sol                                       -           -
 Argentina peso (interbank)               57.8300       -0.14
                                                   
 

 (Reporting by Sruthi Shankar in Bengaluru; Editing by Steve
Orlofsky)
  
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