April 9, 2019 / 9:35 PM / 3 months ago

EMERGING MARKETS-Latam stocks fall with Argentina, Brazil sliding most

 (Recasts throughout, updates prices, adds market strategist's
    By Aaron Saldanha
    April 9 (Reuters) - Most Latin American stock markets fell
along with their global peers on Tuesday, with risk appetite in
Brazil hit by a lack of progress on pension reform, while wider
sentiment was affected by a U.S. threat for tariffs on European
Union goods.
    The International Monetary Fund cut its outlook on the
global economy and also for Brazil and Mexico, tarnishing
    Rafael Bevilacqua, chief strategist at independent
investment consultancy Levante, said the lack of positive news
on the pension reform proposal caused Brazilian stocks to fall,
reflecting investors' caution around the proposal's progress. 
    MSCI's index of Latin American stocks fell
half a percent, as losses among stocks in index heavyweights
Brazil and Mexico exacted a hefty toll. 
    Brazil's real dipped 0.1 percent while stocks
slid 1.1 percent, with losses incurred in each sector apart from
consumer staples.
    Common shares and preferred shares of
state-run oil firm Petroleo Brasileiro SA (Petrobras) dropped
0.9 percent and 0.3 percent, respectively, tracking lower oil
    The preferred shares snapped a three session winning run
during which time they tacked on about 6.2 percent, buoyed in
part by the $8.6 billion divestment of a 90 percent stake in
pipeline unit TAG to an Engie-led consortium.
    Shares of Vale SA fell 2 percent. The miner's own
and contract workers in Brumadinho are to join a lawsuit for
greater total labor claims against the company, after a dam
burst in January led to the deaths of 300 people.
    Ambev rose 2 percent and was one of the
benchmark's few gainers on the day. Credit Suisse said it sees
the firm recording a 7 percent rise in beer volumes in Brazil in
the first quarter, to go with 12 percent revenue growth.
    Mexican stocks fell 0.6 percent, distancing
themselves from five-month highs on Monday, while the peso
currency edged up.
    Annual inflation in Mexico ticked up slightly in March, data
showed, spurred by a jump in gasoline prices that has raised red
flags with the government.
    Argentina's stocks benchmark tumbled 4 percent to
reverse the 4.1 percent gain made over the past three sessions. 
    Chilean stocks ticked 0.1 percent higher, while
the currency dipped as local demand for foreign exchange
overcame support provided by higher prices of copper,
the country's top export.        . 
    "In Chile, pension reform difficulties have been a headwind
to the more positive fundamental story," Ilya Gofshetyn, an
analyst with Standard Chartered Bank, told the Reuters Global
Market Forum. 
    "Both Chile and Colombia are of course beholden to their
respective commodity exports to some degree, Chile more so than
    Colombia's peso firmed 0.4 percent, while stocks
 slipped 0.1 percent. Oil firm Ecopetrol SA
pulled 1.3 percent lower by weak oil prices.
    Japan's Softbank Group announced the initial executive
investment team for the $5 billion technology growth fund for
Latin America.
    Latin American stock indexes and currencies at 2105 GMT
 Stock indexes                                      daily %
                                        Latest       change
 MSCI Emerging Markets                    1093.44      0.45
 MSCI LatAm                               2834.12     -0.52
 Brazil Bovespa                          96291.79     -1.11
 Mexico IPC                              45151.63     -0.63
 Chile IPSA                               5281.78      0.13
 Argentina MerVal                        31743.38     -4.04
 Colombia IGBC                           13244.14     -0.07
 Currencies                                         daily %
 Brazil real                               3.8501      0.09
 Mexico peso                              18.9342     -0.02
 Chile peso                                 663.8     -0.02
 Colombia peso                            3101.45      0.00
 Peru sol                                   3.294     -0.18
 Argentina peso (interbank)               43.3500      0.92

 (Reporting by Aaron Saldanha in Bengaluru, Additional reporting
by Michael Connor in New York and Stefani Inouye in Sao Paulo;
editing by Grant McCool)
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