July 12, 2018 / 11:03 PM / 4 months ago

EMERGING MARKETS-Brazil stocks rebound with eye on global trade tensions

 (Updates prices, adds news from Argentina and Colombia)
    SAO PAULO, July 12 (Reuters) - Brazil's benchmark Bovespa index jumped
nearly 2 percent on Thursday, bouncing back from a dip on Wednesday, as Latin
America's largest equities market continued to seesaw on global trade tensions.
    Latin American equities and currencies have proven sensitive to the ongoing
U.S.-China trade dispute, along with U.S. President Donald Trump's stance toward
other global powers. Local traders have tracked global markets, selling as
tension mounts and buying back in as the rhetoric cools.
    On Wednesday, Brazil's Bovespa fell 0.62 percent as the United States
announced tariffs on an additional $200 billion of Chinese imports.

    Brazilian traders were heartened on Thursday, however, as Trump struck a
more conciliatory tone with NATO allies after launching a public attack on
German policy earlier in the week, according to Filipe Villegas, an equities
analyst at Sao Paulo-based brokerage Genial Investimentos.
    Major currencies across the region were generally trading stronger against
the dollar, recouping Wednesday losses, when traders fled emerging market
currencies amid trade fears.
    Mexico's peso, which climbed 0.74 percent against the dollar, aided
by U.S. data for June which showed inflation barely rising, possibly reducing
the urgency for U.S. interest rate hikes.
    In Argentina, estimates of the country's drought-hit corn crop may be cut
further from the 32 million tonnes currently expected to be harvested this
season, the Buenos Aires Grains Exchange and the country's main farmers group
said on Thursday.
    A reduced Argentine crop would squeeze global supplies of the feed grain to
levels not seen in at least four years. 
    In Colombia, trade, industry and banking associations called for tax cuts,
lower labor costs and pension reform on Thursday in a series of proposals to
President-elect Ivan Duque to help bolster the sluggish economy.
        
Key Latin American stock indexes and currencies at 2051 GMT:

 Stock indexes               Latest    Daily pct  YTD pct
                                        change     change
 MSCI Emerging Markets       1,070.24       0.52     -7.61
                                                  
 MSCI LatAm                  2,568.00       0.81      -9.2
                                                  
 Brazil Bovespa             75,856.22       1.96     -0.71
 Mexico IPC                 48,696.30      -0.67     -1.33
 Chile IPSA                  5,283.82      -0.26     -5.05
 Chile IGPA                 26,765.01      -0.21     -4.35
 Argentina MerVal           26,760.77      -1.73    -10.99
 Colombia IGBC              12,244.54      -0.54      7.69
 Venezuela IBC             105,368.62      13.84  8,241.80
                                                  
                                                          
 Currencies                    Latest  Daily pct   YTD pct
                                          change    change
 Brazil real                   3.8820       0.02    -14.65
 Mexico peso                  18.9500       0.74      3.95
 Chile peso                    648.55       0.63     -5.23
 Colombia peso                 2874.8       0.70      3.73
 Peru sol                       3.272       0.21     -1.07
 Argentina peso               27.2000       0.74    -31.62
 (interbank)                                      
 Argentina peso                  28.4       0.11    -32.29
 (parallel)                                       
 
 (Reporting by Gram Slattery and Paula Arend Laier; Editing by Tom Brown)
  
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