August 26, 2019 / 3:28 PM / 3 months ago

EMERGING MARKETS-Latam FX steadies as U.S.-China trade tensions cool

    Aug 26 (Reuters) - The Mexican peso steadied on Monday after
hitting an eight-month low while other currencies in Latin
America stabilized as risk assets across the world rebounded on
U.S. President Donald Trump signaling a resumption of U.S.-China
trade talks.
    The Mexican peso edged up 0.15% and the trade news
offered some relief to investors, helping Mexico's IPC
and Colombia's stock index post gains, but Brazil's
Bovespa came under renewed pressure. 
    The Brazilian real fell about 0.6% to hit its lowest
level in nearly a year after data showed a current account
deficit of $9 billion in July, far wider than the $5.9 billion
shortfall forecast in a Reuters poll of economists.
    Brazil is also facing pressure from world leaders because of
 a record number of fires in the Amazon rainforest creating an
environmental crisis. European leaders have threatened to tear
up a trade deal with South America.
    On Friday, China and the United States had threatened to
slap tariffs on each other's goods and Trump told U.S. companies
to look for alternatives to their China operations, raising
fears that the drawn-out trade war will tip the world into
recession. Trump said on Monday that China had contacted U.S.
trade officials overnight to say it wanted to return to the
negotiating table.
         
    Latin American stock indexes and currencies at 1959 GMT:
    
   Stock indexes           Latest    Daily %
                                     change
 MSCI Emerging Markets       961.66    -1.23
                                     
 MSCI LatAm                 2484.04     -1.9
                                     
 Brazil Bovespa            96899.90    -0.79
                                     
 Mexico IPC                39935.72     0.18
                                     
 Chile IPSA                       -        -
                                     
 Argentina MerVal          26692.06    0.399
                                     
 Colombia IGBC             12282.88      0.9
                                     
                                            
      Currencies           Latest    Daily %
                                     change
 Brazil real                 4.1488    -0.62
                                     
 Mexico peso                19.8939     0.16
                                     
 Chile peso                   718.1     0.01
                                     
 Colombia peso              3423.33    -0.06
                                     
 Peru sol                    3.3758    -0.02
                                     
 Argentina peso             55.2200    -0.05
 (interbank)                         
                                     
 

 (Reporting by Sruthi Shankar in Bengaluru; editing by Grant
McCool)
  
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