December 13, 2019 / 2:58 PM / a month ago

EMERGING MARKETS-Latam stock rally fades after Trump tweet dashes U.S.-China trade hopes

    * Brazil stocks come down from record high to trade lower
    * Latam markets still set for weekly gains
    * Chile stocks extend gains into fifth session

    By Ambar Warrick
    Dec 13 (Reuters) - Most Latin American markets pared gains
on Friday and Brazil stocks edged down from a record, as trade
uncertainty spiked after a tweet by U.S. President Donald Trump
said a report of a trade deal between Washington and Beijing was
"completely wrong."
    Trump tweeted that a Wall Street Journal report of a U.S.
trade deal with China was "completely wrong, especially their
statement on tariffs." The tweet did not offer specifics and did
not indicate which article he meant.
    Risk assets had rallied earlier in the day amid multiple
reports of a Sino-U.S. trade deal, none of which were confirmed
officially by Washington or Beijing.
    Investors also bought risk assets after Britain's Prime
Minister Boris Johnson's ruling Conservative Party won a solid
majority, boosting confidence London would accomplish an orderly
exit from the European Union.
    Regional assets were set to gain for the week, supported
after dovish indications from the U.S. Federal Reserve. 
    Wall Street opened weaker following Trump's tweet. 
    The Brazilian benchmark came off a new record to
trend lower, while the MSCI's index of Latin American stocks
 was flat, off a more-than one-month high earlier
in the session.
    Oil and gas heavyweight Petroleo Brasileiro SA
was the largest drag on the Brazil's equity index after the
Brazilian state development bank said it is considering selling
up to all of the ordinary shares it holds in the state-run oil
company via a secondary offering. 
    The real was down slightly to the dollar, and was set
to snap two straight sessions of strengthening. 
    Chilean stocks extended gains into a fifth
straight session, with agricultural chemicals maker Sociedad
Quimica y Minera de Chile S.A serving as the best
performer on the benchmark index. 
    Chile's peso also ticked higher against the dollar.
    The Mexican peso was largely flat, having touched its
strongest against the dollar in more than four months amid
positive news about the U.S.-Mexico-Canada Agreement trade deal.
 
    
    Key Latin American stock indexes and currencies at 0236 GMT
    
    Stock indexes             Latest    Daily % change
 MSCI Emerging Markets         1086.27            1.45
                                        
 MSCI LatAm                    2827.70            0.48
                                        
 Brazil Bovespa              112150.65           -0.04
                                        
 Mexico IPC                       0.00               0
                                        
 Chile IPSA                    4898.67            1.73
                                        
 Argentina MerVal             35807.94           0.854
                                        
 Colombia COLCAP               1621.39            0.17
                                        
                                                      
       Currencies             Latest    Daily % change
 Brazil real                    4.0980           -0.15
                                        
 Mexico peso                   19.0399            0.05
                                        
 Chile peso                        767            0.29
                                        
 Colombia peso                 3371.48           -0.07
 Peru sol                       3.3668            0.24
                                        
 Argentina peso                59.8150            0.00
 (interbank)                            
                                        
 
 (Reporting by Ambar Warrick in Bengaluru; Editing by David
Gregorio)
  
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