February 28, 2018 / 10:23 PM / a year ago

EMERGING MARKETS-Mexico stocks clock worst month in 6-1/2 years on Fed, NAFTA worries

 (Updates prices)
    SAO PAULO, Feb 28 (Reuters) - Mexican equities fell sharply
again on Wednesday, capping their worst month in 6-1/2 years, as
a mediocre corporate results season wrapped up amid uneasy
negotiations to save the North American Free Trade Agreement.
    Markets also continued to be spooked following a relatively
hawkish speech by the newly appointed head of the Federal
Reserve Jerome Powell that raised speculation about increased
monetary tightening in the United States in 2018.
    In a note to clients, Mexican brokerage Monex said global
markets were continuing to show mixed movements, but with a
downward bias, after Powell's speech.
    U.S., Mexican and Canadian officials are meeting in Mexico
City in their seventh round of talks to overhaul the NAFTA trade
deal. Talks have been complicated by the threat the United
States could impose tariffs on steel.
    The benchmark IPC index shed 1.1 percent to close at
its lowest since December. The index fell 6 percent in the month
in its worst monthly percentage loss since September 2011.
    Brazil's Bovespa lost about 1.7 percent. Brazil's
main stock gauge managed a monthly advance of about 1 percent.  
    Shares in major Brazilian miner Vale SA fell
about 4.8 percent, its worst drop since last May, following
fourth quarter results that missed analysts estimates.

    Shares in major planemaker Embraer SA lost 4.7
percent after a report in Brazilian newspaper O Globo said that
newly appointed defense minister Joaquim Silva e Luna has been
one of the most avid opponents of a proposed joint venture
between Embraer and U.S. planemaker Boeing SA.
    The company's chief executive said he expected the talks to
be concluded in the first half of 2018.
Key Latin American stock indexes and currencies at 20:59 GMT:
 Stock indexes                          daily  YTD %
                                            %  chang
                              Latest    chang      e
 MSCI Emerging Markets         1194.21  -1.49   4.65
 MSCI LatAm                    3071.57  -1.69  10.47
 Brazil Bovespa               85481.47  -1.67  11.88
 Mexico IPC                   47364.22  -1.26  -4.03
 Chile IPSA                    5602.83  -0.69   0.69
 Chile IGPA                   28132.18  -0.64   0.54
 Argentina MerVal             33010.90   1.52   9.80
 Colombia IGBC                11443.09  -2.73   0.64
 Venezuela IBC                 4242.88  -5.26  235.9
 Currencies                             daily  YTD %
                                            %  chang
                                        chang      e
                                Latest      e  
 Brazil real                    3.2467  -0.14   2.05
 Mexico peso                   18.8530  -0.02   4.49
 Chile peso                      594.5  -0.40   3.39
 Colombia peso                    2865  -0.35   4.08
 Peru sol                        3.266  -0.43  -0.89
 Argentina peso (interbank)    20.1100   0.65  -7.51
 Argentina peso (parallel)       20.22   0.30  -4.90
 (Reporting by Gram Slattery
Editing by Diane Craft)
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