June 19, 2018 / 3:14 PM / a month ago

EMERGING MARKETS-Trade fears send Latam equities, currencies sliding

    SAO PAULO, June 19 (Reuters) - Latin American equities and
currencies fell across the board on Tuesday, following Wall
Street lower due to escalating trade tensions between the United
States and China.
    U.S. President Donald Trump stepped up trade war rhetoric on
Monday, threatening a 10 percent tariff on more than $200
billion of Chinese goods. Beijing warned it would retaliate.

    The tit-for-tat dispute sent the Dow Jones Industrial
Average down well over 1 percent on Tuesday, wiping away
its gains for the year, with 29 of the Dow's 30 components in
the red.
    Latin American stocks followed suit, with Mexico's benchmark
IPC equities index falling 0.73 percent in morning trade,
Chile's IPSA sliding 0.47 percent, and Colombia's IGBC
 off 0.22 percent.
    Brazil's benchmark Bovespa, bucked the trend,
however, climbing a 0.9 percent in morning trade as traders
sought buying opportunities after the index fell for four
straight sessions.
    "Despite the greater sense of risk aversion abroad due to
the worsening trade dispute between two world powers, we have a
recovery scenario after strong recent drops," said Vitor Suzaki,
an analyst at Sao Paulo-based Lerosa Investimentos.
    Among the biggest gainers on the Bovespa were banking stocks
as traders bought back in following a dramatic rout for the
sector in recent days. Preferred and common shares in Banco
Bradesco SA climbed 3.7 percent and 3.2 percent,
respectively, while shares in Itaú Unibanco Holding SA
 were up 2.4 percent. Both had fallen over 15 percent
in the last 10 sessions.
    A commodities selloff hit Brazilian stocks such as iron ore
miner Vale SA, and steelmakers Usinas Siderurgicas de
Minas Gerais SA and Gerdau SA, which fell
3.6 percent, 3 percent and 2.6 percent, respectively.

    All major currencies in the region were off at least 0.3
percent by mid-day. The peso in copper-dependent Chile
led losses, falling 0.85 percent to 642.67 pesos to the dollar.
    
Key Latin American stock indexes and currencies at 1504 GMT:
    
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets         1081.65      -2.2     -4.53
                                                  
 MSCI LatAm                    2422.77      0.33    -14.62
                                                  
 Brazil Bovespa               70441.21       0.9     -7.80
                                                  
 Mexico IPC                   46319.60     -0.73     -6.15
                                                  
 Chile IPSA                    5421.80     -0.47     -2.57
                                                  
 Chile IGPA                   27407.00     -0.48     -2.05
                                                  
 Argentina MerVal             28588.04      3.37     -4.91
                                                  
 Colombia IGBC                12274.62     -0.22      7.95
                                                  
 Venezuela IBC                63770.45      7.94   4948.57
                                                  
                                                          
 Currencies                              daily %     YTD %
                                          change    change
                                Latest            
 Brazil real                    3.7549     -0.42    -11.76
                                                  
 Mexico peso                   20.5810     -0.36     -4.29
                                                  
 Chile peso                     642.67     -0.85     -4.36
                                                  
 Colombia peso                 2935.22     -0.45      1.59
 Peru sol                        3.283     -0.21     -1.40
                                                  
 Argentina peso                27.7000      0.00    -32.85
 (interbank)                                      
                                                  
 Argentina peso                     28      0.54    -31.32
 (parallel)                                       
                                                  
 

 (Reporting by Gram Slattery and Flavia Bohone
Editing by Marguerita Choy)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below