November 13, 2018 / 9:55 PM / 6 months ago

EMERGING MARKETS-Latam stocks fall for sixth straight day, currencies slide

 (Recasts, updates prices, adds quotes)
    By Aaron Saldanha
    Nov 13 (Reuters) - Latin American stocks fell for a sixth
consecutive day on Tuesday and regional currencies followed
suit, with Mexico's peso hitting a near five-month trough on
frigid investor sentiment towards the country and broader Latin
    MSCI's index of currencies in Latin America
fell 0.9 percent, while the regional stock index
dropped 1.9 percent.
    Stocks on Mexico's benchmark slid 2 percent, leaving
them at their lowest since February 2016. 
    Mexican markets have been shaken and stirred in recent
weeks, initially by the scrapping of an already begun airport
project after a public consultation.
    Then a senator's proposal last week to cap and eliminate
certain banking commissions jolted investors. Contrasting
signals by the senator and President-elect Andres Manuel Lopez
Obrador have only heaped on the uncertainty.
    "There is lot of concern that we may see government missteps
further down the line, that's what is being priced into Mexico
right now," said Christian Lawrence, a senior market strategist
with Rabobank.
    Grupo Financiero Banorte fell 1.2 percent. The
largest weighted bank on the benchmark has crumbled about a
fifth in the five sessions through Tuesday.
    The Mexican peso fell half a percent. The central
bank is expected to raise its key rate on Thursday after a sharp
drop in the peso, as per a Reuters poll.    
    "I don't think a hike would create much of a reaction to put
it bluntly, we are going to see this move continue as we are now
in carry trade unwind territory," said Rabobank's Lawrence.
    Brazil stocks dipped 0.7 percent, with energy stocks
following oil prices lower. Petroleo Brasileiro SA
 fell 4.3 percent.
    The real slid on persistent disappointment that
pension reform, closely watched by investors, was unlikely to be
passed this year.  
    Argentine peso was about 1.6 percent weaker after
ratings firm Standard & Poor's lowered the country's long-term
    Argentine stocks fell 3 percent, weighed by energy
    Colombia's peso weakened while local shares
dropped 2.2 percent. The index has now given back all gains made
since mid-September.
    Latin American stock indexes and currencies at 2120 GMT
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets          966.02     -0.04    -16.61
 MSCI LatAm                    2554.27     -1.92     -9.68
 Brazil Bovespa               84914.11     -0.71     11.14
 Mexico IPC                   42450.95     -1.98    -13.99
 Chile IPSA                    5129.98     -0.45     -0.45
 Argentina MerVal             28543.43     -2.99     -5.06
 Colombia IGBC                12083.09      -2.2      6.27
 Currencies                              daily %     YTD %
                                          change    change
 Brazil real                    3.8031      0.69    -12.88
 Mexico peso                   20.4750     -0.56     -3.79
 Chile peso                        692     -0.69    -11.18
 Colombia peso                 3186.06     -0.37     -6.40
 Peru sol                        3.379     -0.15     -4.20
 Argentina peso                36.0100     -1.00    -48.35
 (Reporting by Aaron Saldanha in Bengaluru; editing by Grant
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