July 22, 2019 / 3:14 PM / 4 months ago

EMERGING MARKETS-Latam FX tepid on smaller U.S. rate-cut bets, oil price jump caps losses

    July 22 (Reuters) - Latin American currencies were subdued
on Monday in line with the broader emerging markets as
expectations of an aggressive interest rate cut by the U.S.
Federal Reserve waned following an easing in China-U.S. trade
tensions, but a jump in oil prices helped limit losses. 
    The South China Morning Post reported trade negotiators from
the United States may visit China next week for their first
in-person talks with Beijing officials since the G20 meeting at
the end of June when U.S. President Donald Trump held off
imposing new tariffs on Chinese goods.
    While a cut of 25 basis points by the Fed next week has been
priced in by the markets, expectations lessened for a cut of as
much as 50 basis points on the trade issue and economic data
    Oil prices, which rose on concerns that Iran's seizure of a
British tanker in the Strait of Hormuz last week may lead to
supply disruptions, helped currencies of crude exporters cap
losses with Colombia's peso trading flat. 
    Brazil's real climbed 0.3% while Sao Paulo-traded
stocks moved half a percent higher aided by gains in
financial companies.
    Vale however, slid more than 1% after it said its
second-quarter iron ore production tumbled almost 34% from a
year ago as many of its dams remained all or partially shut down
following a deadly dam burst in January.
    Mexican stocks along with the peso slid, as
concerns about state-run oil firm Pemex re-emerged after it 
warned of a risk of delays to President Andres Manuel Lopez
Obrador's flagship Dos Bocas refinery project as per Mexican
newspaper Reforma.
    Chile's peso rose marginally, tracking a gain in the
price of copper, Chile's top export, while stocks on the
IPSA index moved 0.3% higher. 
    Latin American stock indexes and currencies at 1451 GMT:
 Stock indexes                       daily %
                            Latest    change
 MSCI Emerging Markets      1053.89    -0.34
 MSCI LatAm                 2924.71     0.38
 Brazil Bovespa           104242.92     0.56
 Mexico IPC                41377.68    -0.55
 Chile IPSA                 5058.09     0.33
 Argentina MerVal          39349.52    -2.02
 Colombia IGBC             12976.50    -0.07
 Currencies                          daily %
 Brazil real                 3.7392     0.34
 Mexico peso                19.0597    -0.19
 Chile peso                   687.9    -0.17
 Colombia peso              3176.68    -0.18
 Peru sol                     3.285    -0.09
 Argentina peso             42.4100     0.07

 (Reporting by Agamoni Ghosh in Bengaluru; editing by Grant
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