March 28, 2018 / 10:42 PM / 8 months ago

EMERGING MARKETS-LatAm stocks extend slide amid trade fears, tech rout

 (Updates prices, adds details from Mexico)
    SAO PAULO, March 28 (Reuters) - Latin American equities came
under renewed pressure on Wednesday, as ongoing fears of a trade
war, a technology sector rout on Wall Street and volatile North
American Free Trade Agreement negotiations depressed investor
sentiment.
    Early on Wednesday, China's Global Times newspaper, a
mouthpiece for the ruling Communist Party, said in a
sharply-worded article that China will soon announce a list of
retaliatory tariffs on exports from the United States. 

    Meanwhile, investors continued to ditch major U.S. tech
stocks, which weighed on Wall Street's major indexes and dragged
many world markets along. Also on Wednesday, Canada's chief
NAFTA negotiator struck a downbeat tone on a quick renegotiation
of the regional accord.
    "The fear of Trump continuing to push for 'America First'
and increasing protectionism is something that will keep
international markets volatile," analysts at Sao Paulo brokerage
Guide Investimentos wrote in a note to clients.
    Losses were intensified by weak commodity prices.
    Nearly all Latin American indices were down on Wednesday.
Mexico's S&P/BMV IPC stock index, which is particularly
sensitive to U.S. trade issues, was the big loser, falling 1.43
percent. Argentina's MerVal dropped 0.39 percent and
Chile's IPSA fell 0.25 percent.
    By contrast, Brazil's Bovespa slid in early trading,
but later pared losses to close slightly higher.
    Shares in water and sewage provider Cia de Saneamento Basico
do Estado de Sao Paulo SA, known as Sabesp, fell 3.6
percent after posting disappointing fourth-quarter results.
    Shares in state-run oil company Petroleo Brasileiro SA
 also dropped over 1 percent amid weak oil prices.
    In Mexico, shares in cement maker Cemex SAB de CV
, which have been volatile in recent months, slid 4.9
percent, helping drag down the IPC and completely erasing gains
that occurred last week when the company canceled a proposed
capital increase.
    Shares in Mexican billionaire Carlos Slim's
telecommunications firm America Movil lost over 2
percent as did breadmaker Bimbo.
       
Key Latin American stock indexes and currencies at 2200 GMT:  
    
 Stock indexes               Latest          Daily   YTD pct
                                               pct    change
                                            change  
 MSCI Emerging Markets          1,162.67      -1.9      0.36
                                                    
 MSCI LatAm                     2,987.06     -0.31      5.62
 Brazil Bovespa                83,874.14      0.08      9.78
 Mexico IPC                    46,124.85     -1.43     -6.54
 Chile IPSA                     5,466.62     -0.25     -1.76
 Chile IGPA                    27,402.25     -0.22     -2.07
 Argentina MerVal              31,114.93     -0.39      3.49
 Colombia IGBC                 11,320.43     -0.17     -0.44
                                                            
 Currencies                       Latest     Daily   YTD pct
                                               pct    change
                                            change  
 Brazil real                       3.331      0.01     -0.53
 Mexico peso                      18.312      0.40      7.57
 Chile peso                        604.2      0.02      1.73
 Colombia peso                  2,793.05     -0.31      6.77
 Peru sol                          3.229     -0.09      0.25
 Argentina peso (interbank)      20.1450      0.10     -7.67
                                                    
 Argentina peso (parallel)         20.71      0.00     -7.15
                                                    
 

 (Reporting by Gram Slattery; editing by G Crosse)
  
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