September 23, 2019 / 8:14 PM / 23 days ago

EMERGING MARKETS-Most Latam stocks, FX fall amid growth and trade concerns

 (New throughout, updates prices, market activity and comments)
    By Susan Mathew
    Sept 23 (Reuters) - Latin American currencies slipped on
Monday against a stronger dollar, and regional stocks also
declined on mounting recession fears and nagging worries about
the U.S.-China trade war.
    Although Washington and Beijing labeled their two-day talks
last week as "productive" and "constructive," a deal appeared
elusive after Chinese officials unexpectedly canceled a visit to
U.S. farms on Friday. Focus now turns to high-level talks
planned for October.
    The dollar gained after the euro fell following dismal
business survey readings from the euro zone.  
  Brazil' real fell 0.5%, while Mexico's peso
 inched 0.1% lower. 
    On Thursday, Mexico's central bank is seen cutting its
benchmark interest rate by 25 basis points for a second time
this year, a Reuters poll showed.
    Chile's currency declined 0.6%, hurt by falling
prices of its main export, copper, while Colombia's peso
fell 0.7% to its lowest in nearly three weeks.
    Colombia's central bank board held its benchmark interest
rate steady at 4.25% again, as expected, and lifted its annual
growth prediction closer to the government target. 
    Analysts at Goldman Sachs expect the rate-cutting cycle in
emerging markets to persist through 2020 in Russia and Mexico,
and through the end of 2019 in Brazil. This should support
equities in those countries, they wrote in a note. 
    Main risks they cited were possible political developments
in Brazil or Mexico or additional sanctions on Russia from the
United States or European Union. 
    Recession and trade fears pressured Latam stocks on Monday,
with Chile stocks down almost 1 percent and Brazil
 stocks down 0.2%.
    Planemaker Embraer was among the worst performers
on Brazil's main index, down 1.8% following a Reuters report
that Boeing is set to face a European Union antitrust
investigation into its bid for a controlling stake in Embraer's
commercial aircraft arm.
    Argentine shares slid more than 3% for their biggest
decline in three weeks, while the currency gave up close
to half a percent. 
    A group of Argentina's biggest bondholders are to meet with
the treasury minister on Monday to hear how the government plans
to respond to its latest financial crisis. 
    
    Key Latin American stock indexes and currencies at 1953 GMT:
    Stock indexes             Latest    Daily %
                                         change
 MSCI Emerging Markets         1015.19      -0.6
                                        
 MSCI LatAm                    2678.33     -0.38
                                        
 Brazil Bovespa              104563.60     -0.24
                                        
 Mexico IPC                   43477.13         0
                                        
 Chile IPSA                    5025.21     -0.94
                                        
 Argentina MerVal             29058.70    -3.332
                                        
 Colombia IGBC                12967.77      0.02
                                        
                                                
       Currencies             Latest    Daily %
                                         change
 Brazil real                    4.1719     -0.45
                                        
 Mexico peso                   19.4913     -0.23
                                        
 Chile peso                      720.9     -1.02
                                        
 Colombia peso                 3437.25     -0.65
 Peru sol                        3.355      0.09
                                        
 Argentina peso                56.9200     -0.44
 (interbank)                            
                                        
 
 (Reporting by Susan Mathew in Bengaluru; Editing by David
Gregorio)
  
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