March 14, 2018 / 5:11 PM / 3 months ago

EMERGING MARKETS-Trump trade talk still drags on LatAm equities

    SAO PAULO, March 14 (Reuters) - Latin American equities
markets fell throughout the region on Wednesday, following Wall
Street, as U.S. President Donald Trump contemplated broad
tariffs against China, adding fuel to fears of a global trade
war.
    Trump is seeking to impose tariffs on up to $60 billion of
Chinese imports and will target the technology and
telecommunications sectors, sources told Reuters late on
Tuesday.
    One source told Reuters this latest measure, arriving in the
wake of tariffs imposed on steel and aluminum, could come in the
"very near future." 
    That sent the S&P 500 index down half a percent in
midday trading. Equities in Latin America roughly followed, with
Brazil's Bovespa down 0.57 percent, Mexico's IPC
falling 0.8 percent and Chile's IPSA down 0.22 percent.
    "There's a risk of trade war ... We had two significant
drops (on Wall Street)," said Ricardo Gomes da Silva, a senior
executive at brokerage Correparti Corretora.
    In Brazil, the country's heavily weighted banking sector
accounted for a significant chunk of losses for the second
consecutive session, as traders continued to bet on benchmark
rate cuts in the near future.
    Longer-term Brazilian interest rate futures continued to
slide. Shorter and medium-term futures posted slight gains, but
did not affect the overarching expectation that the country's
central bank will cut the benchmark Selic rate next week.
    In Mexico, shares in heavily weighted cement maker Cemex SAB
de CV fell 1.54 percent after the company said on
Wednesday the U.S. Department of Justice had asked for
information on its operations in Colombia and other
jurisdictions.
    Losses in Chile were limited by buoyant copper prices
 after key consumer China posted solid industrial output
data.
    
Key Latin American stock indexes and currencies at 1652 GMT:    
    
 Stock indexes                       daily %    YTD %
                            Latest    change   change
 MSCI Emerging Markets      1218.69    -0.42     5.64
                                              
 MSCI LatAm                 3095.49    -0.94    10.49
                                              
 Brazil Bovespa            85892.10    -0.57    12.42
                                              
 Mexico IPC                48170.41     -0.8    -2.40
                                              
 Chile IPSA                 5619.04    -0.22     0.98
                                              
 Chile IGPA                28115.54     -0.2     0.48
                                              
 Argentina MerVal          32849.32     -0.4     9.26
                                              
 Colombia IGBC             11358.74    -0.41    -0.10
                                              
 Venezuela IBC              6313.24    14.66   -80.09
                                              
                                                     
 Currencies                          daily %    YTD %
                                      change   change
                             Latest           
 Brazil real                 3.2654    -0.13     1.47
                                              
 Mexico peso                18.5850     0.15     5.99
                                              
 Chile peso                  600.86     0.27     2.30
                                              
 Colombia peso               2842.6     0.37     4.90
                                              
 Peru sol                      3.26     0.06    -0.71
                                              
 Argentina peso             20.2050     0.07    -7.94
 (interbank)                                  
                                              
 Argentina peso               20.65     0.10    -6.88
 (parallel)                                   
                                              
 

 (Reporting by Gram Slattery
Editing by James Dalgleish)
  
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