July 31, 2018 / 9:36 PM / 4 months ago

EMERGING MARKETS-Q2 results hit Brazilian equities, Mexican peso slides

 (Updates prices)
    SAO PAULO, July 31 (Reuters) - Brazil's benchmark Bovespa
equities index tumbled 1.3 percent on Tuesday as poor
quarterly results in the financial services and retail sectors
and a federal police price-fixing probe hit shares, while the
Mexican peso slipped after a long rally.
    Among firms that reported disappointing second-quarter
results on Monday evening were Cielo SA, Brazil's
largest credit card processor, Itau Unibanco Holding SA
, the country's top private lender, and RD,
the nation's No. 1 over-the-counter drug retailer.

    All three were down at least 2 percent at one point in
morning trade after missing profit estimates. Cielo was the
Bovespa's biggest loser, falling nearly 10 percent, its biggest
intraday drop since 2016, after increased competition hit
margins.
    Fuel companies Ultrapar Participacoes SA, Cosan
SA and Petroleo Brasileiro SA, as well as
recently floated distribution unit Petrobras Distribuidora SA
, also fell sharply after police in the southern state
of Parana said they were investigating a wide-ranging gas price
fixing scheme.
    Adding to the sell-off, traders said they were taking
profits, especially in banking stocks, after the Bovespa climbed
over 10 percent so far in July.
    "The rise this month also opened space for realizing some
profits, especially with banks, which rose more than double
digits," said Vitor Suzaki, an analyst at Sao Paulo-based Lerosa
Investimentos.
    In Mexico, the peso weakened 0.34 percent after the
country's gross domestic product contracted during the second
quarter. The peso had strengthened for seven straight sessions. 
    The country's benchmark stock exchange edged 0.01
percent lower as investors booked profits after second-quarter
earnings reports.
    Across Latin America, most currencies posted moderate losses
on Tuesday in the lead-up to a Federal Reserve interest rate
decision on Wednesday. The Fed is expected to keep rates
unchanged, but solid U.S. economic growth combined with rising
inflation are likely to keep it on track for another two hikes
this year.
    
Key Latin American stock indexes and currencies at 19:47 GMT:
    
    
 Stock indexes                daily  YTD %
                                  %  chang
                    Latest    chang      e
                                  e  
 MSCI Emerging       1088.37  -0.16   -5.9
 Markets                             
 MSCI LatAm          2706.12  -1.15   -3.2
                                     
                                     
 Brazil Bovespa     79185.48  -1.36   3.64
                                     
 Mexico IPC         49666.47  -0.08   0.63
                                     
 Chile IPSA          5433.06   0.94  -2.36
                                     
 Chile IGPA         27348.47   0.83  -2.26
                                     
 Argentina MerVal   29252.39   0.07  -2.70
                                     
 Colombia IGBC      12193.28  -0.81   7.23
                                     
 Venezuela IBC      89351.79      0  6973.
                                        78
                                          
 Currencies                   daily  YTD %
                                  %  chang
                              chang      e
                      Latest      e  
 Brazil real          3.7526  -0.62  -11.7
                                         1
 Mexico peso         18.6080  -0.34   5.86
                                     
 Chile peso            637.2   0.09  -3.54
                                     
 Colombia peso        2888.1  -0.63   3.25
                                     
 Peru sol              3.272  -0.06  -1.07
                                     
 Argentina peso      27.4100  -0.53  -32.1
 (interbank)                             4
                                     
 Argentina peso         28.2   0.71  -31.8
 (parallel)                              1
                                     
 
 (Reporting by Gram Slattery and Paula Arend Laier; additional
reporting by Julia Love 
Editing by Frances Kerry and James Dalgleish)
  
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