April 11, 2019 / 3:09 PM / 2 months ago

EMERGING MARKETS-Latam stocks and currencies fall on global growth concerns

    * Bolsonaro government hits 100-day mark 
    * Currencies of net crude exporters slide 
    * B2W and Magazine Luiza slide on possible Netshoes takeover

    By Agamoni Ghosh
    April 11 (Reuters) - Latin American stocks and currencies
fell on Thursday as risk appetite shrunk after central banks in
Europe and the United States acknowledged global growth
concerns, while investors eyed progress related to Brazil's
pension reform.
    MSCI's index of Latin American stocks and
fell over 1 percent as investors piled onto safe-heaven assets
in wake of global growth fears.  
    The European Central Bank left borrowing costs unchanged on
Wednesday and warned that threats to economic growth remained.
Later, minutes from a March 19-20 Federal Reserve meeting
acknowledged the global slowdown but suggest the U.S. economy
could sail through.
    Sao Paulo-traded stocks dropped for a third-straight
session weighed down by financial stocks as investors awaited
further progress related to the pension reform on a day the
government of President Jair Bolsonaro reaches its 100-day mark.
    Treasury Secretary Mansueto Almeida said on Wednesday that
the expected savings of up to 700 billion reais ($183 billion)
over the next decade from the much-hyped social security plan
might be acceptable for investors, but not the government.
    The pension reform is seen as the most important economic
reform for Brazil and its mounting fiscal deficit.  
    Brazilian retailers B2W and Magazine Luiza
 slid about 1 percent each after confirming in filings
they are considering the acquisition of online shoe retailer
Netshoes Ltd.
    Fertilizantes Heringer rose over 1 percent after
the fertilizer company proposed to repay unsecured creditors 20
percent of amounts owed them and to sell seven non-operating
plants, as part of its restructuring plan.
    Currencies in the region slid against a firmer dollar with
net crude exporters like Mexico's peso being hit by lower
oil prices.
    Data showed on Thursday that industrial output in Latin
America's second largest economy rose 0.3 percent in February
from January but was 0.8 percent lower year-over-year.

    Chile's peso fell marginally tracking a dip in the
price of copper, the country's top export, while stocks
on the IPSA index slipped about half a percent.  

    Key Latin American stock indexes and currencies at 1450 GMT
   
 MSCI Emerging Markets       1086.78    -0.85
                                      
 MSCI LatAm                  2806.26    -1.18
                                      
 Brazil Bovespa             95016.12    -0.98
                                      
 Mexico IPC                 44415.52     -1.1
                                      
 Chile IPSA                  5256.05    -0.42
                                      
 Argentina MerVal           31929.40     -0.7
                                      
 Colombia IGBC              13179.65    -0.83
                                      
                                             
 Currencies                           daily %
                                       change
                              Latest  
 Brazil real                  3.8371    -0.36
                                      
 Mexico peso                 18.8565    -0.25
                                      
 Chile peso                    663.2    -0.21
                                      
 Colombia peso               3108.35    -0.47
 Peru sol                      3.296    -0.06
                                      
 Argentina peso              42.8200     0.49
 (interbank)                          
                                      
 
 (Reporting by Agamoni Ghosh; editing by Diane Craft)
  
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