November 6, 2019 / 7:10 PM / 6 days ago

EMERGING MARKETS-Latam stocks fall, tepid response to oil auctions hit Brazil's real

 (Updates prices)
    By Sruthi Shankar and Agamoni Ghosh
    Nov 6 (Reuters) - Latin American stocks fell on Wednesday
after a report said a trade deal between the United States and
China could be delayed, while Brazil's real was knocked lower by
underwhelming response to a closely watched auction of oil
exploration blocs.
    MSCI's index of Latin American stocks fell
1.6% after a Reuters report said signing the deal could be
delayed until December as terms and venue were not yet
finalised.
    The Bovespa fell 0.5%, with shares in food processor
JBS SA extending losses for a second day after a top
prosecutor requested the annulment of plea bargain deals
previously signed with former executives of the company.
    Stocks in Chile and Colombia also fell but
Mexico's IPC index bucked the trend to climb 0.2% higher.
    Among currencies, Brazil's real stood out, down
nearly 2%, after the country's biggest-ever oil auction that was
expected to attract foreign investors received tepid response.
    A Petrobras consortium, including Chinese state-run
companies CNOOC and CNODC won the massive Buzios oil block,
without any rival bids as the lack of competition underscored
the costly terms of the blockbuster oil round. 
    Flavio Serrano, a senior economist at Haitong Bank, said
investors had expected more participation from foreign firms and
were disappointed with the results. 
    If all the areas had received a bid, Brazil's government
could have netted 106.5 billion reais ($26.7 billion) in signing
bonuses, offering breathing space for a tight federal budget and
cementing Brazil's ascendance as Latin America's oil powerhouse.
    Chile's peso rose 1%, while the Mexican peso
rose marginally taking advantage of a weaker dollar. 

  Latin American stock indexes and currencies at 18:53 GMT
 Stock indexes                                daily % change
                           Latest         
 MSCI Emerging Markets           1067.09               -0.39
                                          
 MSCI LatAm                      2769.82               -1.72
                                          
 Brazil Bovespa                108117.92               -0.55
                                          
 Mexico IPC                     43706.42                0.22
                                          
 Chile SPIPSA                    4599.94               -2.75
                                          
 Argentina MerVal               35409.55              -3.961
                                          
 Colombia IGBC                  13460.16               -0.79
                                          
                                                            
 Currencies                                   daily % change
                                  Latest  
 Brazil real                      4.0768               -2.07
                                          
 Mexico peso                     19.1750                0.13
                                          
 Chile peso                          741                1.04
                                          
 Colombia peso                      3336               -0.37
 Peru sol                          3.339               -0.06
                                          
 Argentina peso                  59.6500                0.09
 (interbank)                              
                                          
 

 (Reporting by Agamoni Ghosh and Sruthi Shankar; Editing by
Giles Elgood)
  
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