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Sagarika Jaisinghani

European shares end week on dour note as trade woes linger

29 Nov 2019

European shares ended the week with their worst day this month as a clutch of fairly upbeat economic data on Friday failed to assuage investor concerns about a setback in Sino-U.S. trade talks after China's rebuke over a U.S. law on Hong Kong.

European shares drop as trade jitters return

28 Nov 2019

European shares retreated from a four-year peak on Thursday as concerns about a U.S.-China trade truce resurfaced after U.S. President Donald Trump signed into law a bill supporting protesters in Hong Kong, drawing a sharp rebuke from Beijing.

Positive trade cues help European stocks wrap up dour week on an upbeat note

22 Nov 2019

European shares logged their best day in three weeks on Friday, as upbeat data out of major eurozone economies, as well as positive rhetoric on a U.S.-China trade deal, ended a dour week on a positive note.

EMERGING MARKETS-Latam assets rise as U.S.-China trade tensions ease; Brazil's real firms

22 Nov 2019

* Brazilian real, Mexican peso rise slightly * U.S.-China trade deal "potentially very close" - Trump By Shreyashi Sanyal and Sagarika Jaisinghani Nov 22 Latin American assets edged higher on Friday as investors turned optimistic about a U.S.-China trade truce after U.S. President Donald Trump said a deal was "potentially very close", while Brazil's real firmed on hopes of more monetary stimulus. An index of Latin American currencies gained 0.6%, while a basket tracking the region's stocks firmed 1%. The Brazilian real rose 0.4% as the country's inflation fell to the second-lowest level in more than two decades, a figure likely to give the central bank extra cover to reduce interest rates again next month. Central banks in developing economies have been ahead of the curve in lowering borrowing costs to combat slowing growth. Last week, the Mexican central bank cut rates for the third time this year. Mexico's peso edged up against a flat dollar after data showed annual inflation accelerated slightly more than expected in the first half of November at an annual rate. "We doubt this will be enough to dissuade (Mexican) policymakers from cutting their key interest rates in December," said John Ashbourne, senior emerging markets economist at Capital Economics. Global stocks also inched up as U.S. President Donald Trump told Fox News a trade deal with China was "potentially very close," following remarks from Beijing that it wanted to work out an initial agreement to halt the prolonged tariff dispute. The mood in financial markets was dulled this week by a diplomatic row between the world's top two economies after Washington passed a bill supporting protesters in Hong Kong. Reuters also reported that the trade deal could slide into 2020. The Latin American currency index has fallen about 4% since its October peak, bogged down by worries over anti-government protests in Chile and unsuccessful oil auctions in Brazil. Investors have also kept a close eye on political developments in Colombia. Colombian unions, student groups and other protesters marched on Thursday against rumored economic reform plans and amid rising discontent with the government of President Ivan Duque. The Colombian peso had a tepid reaction to the news as traders pointed to the protests being mostly peaceful. Brazil's stock index rose 0.7% and was on course for its best week in four. Argentina's MerVal index gained nearly 1%, while the Mexico stock index inched up 0.1%. Key Latin American stock indexes and currencies at 1455 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1047.30 0.26 MSCI LatAm 2706.44 1.1 Brazil Bovespa 108240.76 0.69 Mexico IPC 43316.02 0.14 Chile SPIPSA 4729.90 -0.3 Argentina MerVal 33533.95 0.86 Colombia COLCAP 1601.51 0.11 Currencies Latest Daily % change Brazil real 4.1764 0.37 Mexico peso 19.3620 0.10 Chile peso 795 0.01 Colombia peso 3402.47 0.42 Peru sol 3.3778 -0.17 Argentina peso (interbank) 59.7800 0.05 (Reporting by Shreyashi Sanyal and Sagarika Jaisinghani in Bengaluru Editing by Alistair Bell)

EMERGING MARKETS-Stocks gain as China comments revive trade deal hopes

22 Nov 2019

Nov 22 Emerging market stocks looked set to end the week on a rosy note on Friday as the latest comments from China about finding a resolution to its tariff dispute with the United States lifted hopes that the two sides would reach a trade agreement soon.

EMERGING MARKETS-Latam FX muted after mixed signals on trade; Brazil stocks gain

21 Nov 2019

* China says will strive to reach trade agreement * Sino-U.S. trade deal could slide into 2020 - report * Brazil real, Colombian peso trading flat * Mexican peso gains on higher oil prices By Sagarika Jaisinghani and Agamoni Ghosh Nov 21 Latin American currencies were little changed on Thursday as conflicting news on trade and a diplomatic row between the United States and China kept investors away from riskier assets, while Brazil stocks were lifted by upbeat corporate reports. The Brazilian real was trading flat, while the Peruvian Sol and Colombian peso firmed just 0.2% against a slightly weaker dollar. China said on Thursday it would strive to reach a trade agreement with the United States, in an attempt to allay fears that negotiations might be unraveling after a report on Wednesday said the deal could slide into next year. U.S. legislation protecting human rights in Hong Kong has also drawn China's criticism and exacerbated concerns about a delay in the resolution to the Sino-U.S. tariff dispute that has dented global growth and dulled business sentiment. "EM assets seem to be struggling today on those concerns about trade and we think they will continue to tread water over the next couple of months on added concerns of a global slowdown," said Jason Tuvey, senior economist at Capital Economics in London. Global stocks retreated from 22-month highs scaled in recent weeks on strengthening hopes of an agreement, which U.S. President Donald Trump said last month could be signed by mid-November. The Mexican peso was an outlier among its regional peers, gaining 0.5% and tracking oil prices higher as a report said OPEC and its allies would likely extend output cuts until mid-2020. Still, currencies in Latin America are on track to post their first monthly decline in three on unsuccessful oil auctions in Brazil and prolonged anti-government protests in Chile. The Chilean peso eased again on Thursday after losing more than 2% this week, staying on course for its fifth weekly decline in a row. The country's stock index was down 0.3%. Shares in Brazil, the biggest economy in Latin America, rose 0.2% after a market holiday on Wednesday. The stock index was boosted by industry heavyweight Petrobras, which said late on Tuesday it would sell its LPG distributor, Liquigas, to Copagaz and National Gas Butano for 3.7 billion reais (about $880 million). Shares in Mexico, Argentina, Colombia and Peru were all trending lower. Key Latin American stock indexes and currencies at 1530 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1042.61 -0.89 MSCI LatAm 2652.23 -0.36 Brazil Bovespa 106098.84 0.22 Mexico IPC 43333.47 -0.62 Chile SPIPSA 4771.75 -0.3 Argentina MerVal 33187.74 -0.698 Colombia Colcap 1595.25 -0.33 Currencies Latest Daily % change Brazil real 4.2119 -0.33 Mexico peso 19.4249 0.17 Chile peso 796.91 -0.88 Colombia peso 3442.71 -0.05 Peru sol 3.3778 0.12 Argentina peso (interbank) 59.7400 -0.02 ($1 = 4.1934 reais) (Reporting by Sagarika Jaisinghani in Bengaluru; Editing by Bernadette Baum)

EMERGING MARKETS-EM stocks fall as Hong Kong bill clouds trade deal

21 Nov 2019

Nov 21 Emerging market stocks fell for a second straight session on Thursday, as a diplomatic row between the United States and China sparked fears of a delay to a deal to end a trade war that has dented global growth and unsettled financial markets.

EMERGING MARKETS-Latam FX weakens as Hong Kong bill sparks trade jitters

20 Nov 2019

* U.S. bill on Hong Kong human rights angers China * Trump threatens to raise tariffs on Chinese imports * Chile peso slides again as protests rage on * Mexican peso, Colombian peso ease By Sagarika Jaisinghani Nov 20 Latin American currencies eased on Wednesday as concerns about flaring U.S.-China trade tensions kept investors from buying into riskier assets, while the Chilean peso extended losses for the third day in a row as anti-government protests showed no signs of letting up. Global stocks retreated from 22-month highs and the dollar edged higher as a U.S. bill meant to protect human rights in Hong Kong amid pro-democracy protests angered China, adding to jitters from a threat by U.S. President Donald Trump to raise tariffs on Chinese imports if a deal was not reached soon. The Mexican peso fell 0.6% and the Colombian peso dipped 0.2%. "Hong Kong has become an even bigger thorn in the already complicated trade talks between the U.S. and China," said Piotr Matys, senior emerging markets FX strategist at Rabobank. "The (bill) could slow down the process of reaching an agreement, but one should not over react and assume that it could become an impenetrable obstacle." A basket of Latin American currencies is on track for its first monthly decline in three, also pressured by unsuccessful oil auctions in Brazil and prolonged civil unrest in Chile. Chile's peso shed 1.3%, erasing all its gains from Friday, when lawmakers yielded to demands of protesters and agreed to hold a referendum to overhaul the country's dictatorship-era constitution. The currency, which has lost over 9% since Oct. 21 when protesters turned to vandalism, also looked past a rise in copper prices after top consumer China cut interest rates to shore up growth. Chile is the world's biggest producer of the red metal. The country's stock index fell 0.4%, while Argentina's MerVal index was up 2.2%. Mexico shares inched up 0.1%, partly lifted by Mexican cement maker Cemex, which said late on Tuesday that its corporate venture capital unit would enter the Chinese market by partnering with two local firms. A Reuters poll that showed annual inflation in Mexico likely accelerated slightly in the first half of November, in part due to an end in government power subsidies used for air conditioning during the hot season. Focus now turns to announcements from central banks for clues on monetary policy. Minutes from the U.S. Federal Reserve's latest policy meeting are due on Wednesday, while European Central Bank chief Christine Lagarde delivers her first major speech on Wednesday. Financial markets in Brazil were closed for a local holiday. Key Latin American stock indexes and currencies at 1520 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1052.01 -0.49 MSCI LatAm 2664.09 0.24 Brazil Bovespa - - Mexico IPC 43647.71 0.1 Chile SPIPSA 4772.89 -0.4 Argentina MerVal 32972.91 2.233 Colombia IGBC - - Currencies Latest Daily % change Brazil real - - Mexico peso 19.4586 -0.63 Chile peso 794.2 -0.91 Colombia peso 3446.62 -0.28 Peru sol 3.3858 -0.29 Argentina peso (interbank) 59.7200 -0.04 (Reporting by Sagarika Jaisinghani and Shreyashi Sanyal in Bengaluru)

EMERGING MARKETS-EM stocks, currencies dip as trade tensions intensify

20 Nov 2019

Nov 20 Emerging market stocks fell on Wednesday as tensions flared again between Washington and Beijing, adding to uncertainty over whether the two sides can end a trade dispute that is one of the biggest risks to global economic growth.

EMERGING MARKETS-Chile peso eases 1% as protests rage on; Latam FX slips

19 Nov 2019

* Chile unrest continues despite government concessions * U.S.-China trade jitters weigh on sentiment * Mexican peso, Argentine peso dip * Brazil real firms as central bank signals stable inflation By Sagarika Jaisinghani and Shreyashi Sanyal Nov 19 The Chilean peso shed more than 1% on Tuesday amid prolonged civil unrest despite some government concessions, while growing uncertainty about a U.S.-China trade deal kept other Latin American currencies directionless in subdued trading. Chile's currency and stocks resumed their slide after a brief reprieve on Friday, when lawmakers agreed to hold a referendum to replace a dictatorship-era constitution. The peso, which had soared nearly 4% on the news, is still on course for its worst month in more than a year. "People are just being cautious because we haven't seen this kind of social unrest in Chile and it is worrisome (since) we don't know where things are going to go from here," said Christian Lawrence, senior market strategist, Latam FX at Rabobank in New York. The Mexican peso, Argentine peso and Peruvian sol traded lower against a flat dollar, hit by trade jitters after a report on Monday that Beijing was pessimistic about a deal with Washington on rolling back tariffs. An index of Latin American currencies dipped more than half a percent and was on course for its worst day in a week. Brazil's real firmed slightly to 4.21 to the dollar after hitting a record low in the previous session as the central bank's president, Roberto Campos Neto, said inflation was low and stable, and that the country's foreign exchange reserves were "quite high." On Monday, the currency crossed a key mark at 4.20 to the dollar, a level last breached in August, when the central bank was prompted to intervene for the first time in over a decade. The bank has since sold dollars in the spot market almost daily to shore up the real, sparking a debate about its intervention policy. It said on Tuesday it would sell up to $600 million through reverse currency swaps, but later canceled the auction ahead of a market holiday on Wednesday. "From a purely fundamental perspective, the real is undervalued at the moment, but the key thing is that it rose above 4.20," said Christian Lawrence, senior market strategist, LatAm FX at Rabobank in New York. Brazil's stock index was down 0.4% in subdued trading, weighed down by financial stocks, while Mexico shares were up marginally after a market holiday on Monday. Key Latin American stock indexes and currencies at 1543 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1056.59 0.42 MSCI LatAm 2653.91 -0.95 Brazil Bovespa 105841.81 -0.4 Mexico IPC 43443.44 0.12 Chile SPIPSA 4758.42 -1.16 Argentina MerVal 30905.51 -2.97 Colombia IGBC - - Currencies Latest Daily % change Brazil real 4.2129 -0.18 Mexico peso 19.3662 -0.28 Chile peso 786.9 -1.82 Colombia peso 3432.39 0.19 Peru sol 3.3788 -0.20 Argentina peso (interbank) 59.7000 -0.03 (Reporting by Sagarika Jaisinghani and Shreyashi Sanyal in Bengaluru)

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