June 20, 2018 / 3:21 PM / a month ago

EMERGING MARKETS-LatAm stocks rebound as traders see bargains

    SAO PAULO, June 20 (Reuters) - Most Latin American stock
markets rose on Wednesday as traders took advantage of a brief
respite in geopolitical worries to buy back into oversold
equities.
    U.S. stocks slid on Tuesday, with the Dow Jones Industrial
Average erasing its year-to-date gains after President
Donald Trump's latest tariff threats against Chinese goods. That
helped drag down equities in Mexico, Chile, and Colombia.

    On Wednesday, the same Latin American indices rebounded,
with Mexico's IPC index climbing 0.51 percent, Chile's
IPSA up 0.47 percent and Colombia's IGBC up 0.31
percent. 
    "Today, the risk aversion has decreased abroad," said one
Sao Paulo-based trader.
    Brazil's Bovespa, which had already posted a strong
recovery on Monday, turned negative after early gains.
    Among the biggest winners on the Bovespa was
state-controlled oil company Petroleo Brasileiro SA,
known as Petrobras, whose preferred and common shares rose 4.4
percent and 3.8 percent, respectively.
    Oil prices were up on Wednesday, supported by reports of a
drop in U.S. commercial crude inventories and the loss of
storage capacity in Libya.
    Shares in Lojas Renner SA, Brazil's largest
apparel retailer, climbed 2.9 percent after analysts at Itaú BBA
raised their rating on the company to "outperform," saying the
company's ongoing expansion is on track.
    Currency markets were mixed across Latin America, with the
Mexican peso posting the biggest move, climbing 0.52 percent in
morning trade.
    "Investors seem to be brushing aside, at least for the
moment, the uncertainty that the North American Free Trade
Agreement and the Mexican presidential elections are
generating," CI Banco wrote in a report.
    
Key Latin American stock indexes and currencies at 1425 GMT:
    
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets         1092.16      0.66     -6.34
                                                  
 MSCI LatAm                    2458.46      0.62    -13.61
                                                  
 Brazil Bovespa               71558.50      0.23     -6.34
                                                  
 Mexico IPC                   46724.05      0.51     -5.33
                                                  
 Chile IPSA                    5460.45      0.47     -1.87
                                                  
 Chile IGPA                   27559.48      0.38     -1.51
                                                  
 Argentina MerVal             29118.51      5.29     -3.15
                                                  
 Colombia IGBC                12171.11      0.31      7.04
                                                  
 Venezuela IBC                65910.87      1.57   5118.02
                                                  
                                                          
 Currencies                              daily %     YTD %
                                          change    change
                                Latest            
 Brazil real                    3.7513     -0.20    -11.68
                                                  
 Mexico peso                   20.4230      0.52     -3.55
                                                  
 Chile peso                     638.71      0.18     -3.77
                                                  
 Colombia peso                 2916.55      0.21      2.24
 Peru sol                        3.281      0.06     -1.34
                                                  
 Argentina peso                27.7500     -0.18    -32.97
 (interbank)                                      
                                                  
 Argentina peso                  28.25     -0.35    -31.93
 (parallel)                                       
                                                  
 

 (Reporting by Gram Slattery and Flavia Bohone; Additional
reporting by Miguel Angel Gutiérrez; Editing by Dan Grebler)
  
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