November 12, 2019 / 2:53 PM / a month ago

EMERGING MARKETS-Chile peso slumps to record low; Trump trade speech eyed

    * Chile stocks touch 2-1/2 year low
    * Brazil, Mexico currencies fall as Trump speech awaited
    * Planemaker Embraer hits one-month low after results
    * Focus on Mexican central bank meeting on Thursday

    By Sagarika Jaisinghani and Susan Mathew
    Nov 12 (Reuters) - Chile's peso sank 4% to a record low on
Tuesday as massive anti-government street protests showed signs
of intensifying further, while currencies in Brazil and Mexico
dropped as the dollar strengthened ahead of a speech by U.S.
President Donald Trump on trade later in the day.
    The Chilean peso fell to 790.98 against the dollar,
while stocks slumped to a two-and-a-half-year low,
after state workers signalled they were not satisfied with the
government's decision to rewrite the country's dictatorship-era
constitution.
    The currency has now fallen for four straight sessions,
losing more than 5% this week, as the South American country has
been racked by almost a month of unrest that has left at least
20 dead and wreaked billions of dollars of damage to public
infrastructure and private businesses.
    "I thought the measures announced last week would provide a
bit of stability and we'd calm down around 750 (pesos to the
dollar)," said Christian Lawrence, senior market strategist,
Latam FX at Rabobank.
    "But things have intensified, which means we are now in a
situation where we'd have to be very very brave to sell
dollar-CLP."
    The gloom was felt across other Latin American economies,
with Brazil's real and the Mexican peso shedding
0.6% and 0.2%, respectively, as the dollar held near one-month
highs. [FSX/}
    Trump's lunchtime speech on trade policy at the Economic
Club of New York will be closely watched by investors for signs
of progress in the U.S.-China trade deal after mixed reports
last week.
    On Thursday, all eyes will be on a Mexican central bank
meeting, where it is widely expected to cut its benchmark
lending rate for the third time this year as the economy shows
signs of stagnating, a Reuters poll showed.
    Sao Paulo-listed shares fell nearly 1% as investors
shrugged of data showing Brazil's services sector activity
rising at its fastest pace in September.
    In corporate news, shares of Brazilian fuel distribution
company Petrobras Distribuidora SA fell 4.4% and were
set for their worst day since March after reporting a fall in
third-quarter revenue. 
    Planemaker Embraer dropped 3% to a one-month low
as it reported a quarterly loss and signalled it may issue a
smaller dividend to shareholders.
    
    Key Latin American stock indexes and currencies at 1435 GMT:
   Stock indexes            Latest    Daily %
                                      change
 MSCI Emerging Markets       1056.03      0.3
                                      
 MSCI LatAm                  2693.03    -1.74
                                      
 Brazil Bovespa            107319.09    -0.97
                                      
 Mexico IPC                        -        -
                                      
 Chile IPSA                  4441.52    -3.85
                                      
 Argentina MerVal           34069.84    1.214
                                      
 Colombia IGBC              13321.29        0
                                      
                                             
       Currencies           Latest    Daily %
                                      change
 Brazil real                  4.1753    -0.80
                                      
 Mexico peso                 19.1550    -0.25
                                      
 Chile peso                    791.2    -4.64
                                      
 Colombia peso                3373.5    -1.17
 Peru sol                     3.3688    -0.23
                                      
 Argentina peso              59.7500    -0.08
 (interbank)                          
                                      
 
 (Reporting by Sagarika Jaisinghani and Susan Mathew in
Bengaluru
Editing by Alistair Bell)
  
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