May 6, 2019 / 2:51 PM / 14 days ago

EMERGING MARKETS-Latam stocks, FX retreat following global equity rout

    By Agamoni Ghosh
    May 6 (Reuters) - Latin American stocks and currencies fell
on Monday on a global equities rout after U.S. President Donald
Trump threatened to raise tariffs on billions of dollars worth
of Chinese goods over a so-far elusive trade agreement. 
    China's foreign ministry said it still hoped the United
States would meet China halfway and said a Chinese delegation
was preparing to go to the United States.
    MSCI world equity index, which tracks shares
in 47 countries, fell half a percent, with MSCI's index of Latin
American stocks and currencies
falling 0.8 percent and 0.6 percent respectively, as prospects
of an end to the trade war anytime soon looked uncertain. 
    "Trump may be emboldened by the strength of the U.S.
economy, and firm U.S. equities and the threats could amount to
a negotiating ploy," said Mitul Kotecha, a senior emerging
markets strategist at TD Securities in a note.
    "But failure to agree on a deal could have bigger
ramifications on China and the global economy." 
    Sao Paulo-traded stocks dropped 1 percent with Banco
Bradesco, the country's second-largest private bank,
at bottom of the index after agreeing to pay $500 million to
acquire Florida Bank           .
    Adding to the grim mood, data showed Brazil's services
sector activity shrank in April, marking the first contraction
since September last year.
    Mexican stocks slid for a tenth straight session
while the peso fell 0.4 percent. 
    Mexico's telecom regulator has opened an anti-trust probe
into "relative monopolistic practices" in the sector, sparking
speculation on whether the government is targeting America Movil
, which dominates the fixed line and mobile phone
business in the country. 
    Shares in America Movil were down more than 2 percent.
    Chile's peso slid 0.7 percent while stocks on the
IPSA index fell to their lowest levels so far this
year. 
    Annual inflation in Chile is expected to creep up slowly to
2.9 percent, according to a monthly poll of 61 traders published
by the bank, a slight uptick over previous predictions despite
sluggish growth.
    
    Key Latin American stock indexes and currencies at 1425 GMT
    
 Stock indexes                        daily %    YTD %
                             Latest    change   change
 MSCI Emerging Markets       1061.09       -2    12.13
                                               
 MSCI LatAm                  2696.28    -1.43      6.6
                                               
 Brazil Bovespa             94829.63    -1.23     7.90
                                               
 Mexico IPC                 43920.67    -0.81     5.48
                                               
 Chile IPSA                  5108.09    -0.47    -0.47
                                               
 Argentina MerVal           32014.56    -1.23     5.68
                                               
 Colombia IGBC              12521.02    -0.42    12.36
                                               
                                                      
 Currencies                           daily %    YTD %
                                       change   change
                              Latest           
 Brazil real                  3.9619    -0.59   -16.37
                                               
 Mexico peso                 18.9930    -0.41     3.72
                                               
 Chile peso                    681.7    -0.57    -9.84
                                               
 Colombia peso               3256.24    -0.65    -8.42
 Peru sol                      3.311    -0.39    -2.23
                                               
 Argentina peso              44.9600    -1.02   -58.63
 (interbank)                                   
                                               
 

 (Reporting by Agamoni Ghosh in Bengaluru
Editing by Susan Thomas)
  
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