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Susan Mathew

European shares dip on disappointing earnings, growth worries

5:34pm BST

European shares slipped on Thursday as weak earnings from Nokia and news of failed attempts at mergers added to a downbeat mood on renewed fears of a slowdown in global growth.

EMERGING MARKETS-Latam markets weaker, Brazil plagued by pension reform worries

24 Apr 2019

(Recasts throughout, updates prices) By Susan Mathew April 24 Brazil's currency and stocks fell on Wednesday as potential hurdles for pension reforms weighed, while other Latin American stocks tracked world equities lower. Currencies succumbed to a stronger dollar. MSCI's index of Latin American shares fell 0.9 percent, while its index of regional currencies slipped 0.4 percent, both having touched their lowest since late March as stocks and currencies across Latam were well in the red. Brazil's real slipped 1.8 percent and hit a four week low, while the Bovespa stock index fell 0.9 percent on broad-based losses, giving up last session's gains. A proposal to change Brazil's bloated pension system, seen as important to controlling the fiscal deficit, cleared a congressional hurdle late on Tuesday, following a lengthy debate that highlighted the government's struggle to build support for its signature reform policy. The congressional vote clears the way for the bill to be considered by a special committee, and focus now turns to the hurdles it may face there. "There is no reason to celebrate, this is only the first step," said Silvio Campos Neto, an economist at Tendências Consultoria. "The bill will next be passed on to the special commission, where the battle will be much harder." Unexpectedly bad March jobs data and declining tax revenue figures also added to concerns about Brazil's sputtering economy, weighing on investor sentiment. "The jobs data reinforces the importance of pension reforms as the government has to begin to generate incentives in the economy," Régis Chinchila, an analyst at Terra Investimentos said. In Mexico, shares and the currency extended losses to a third straight session, with the peso hitting the lowest in two and half weeks as the dollar gained significantly. A retreat in oil prices also hurt the crude exporter's currency. Colombia's peso, also an oil exporter, slid to its lowest in 3-1/2 weeks. Data on Wednesday showed that Mexican consumer price inflation accelerated faster than expected in the first two weeks of April, restricting the central bank's scope to ease borrowing costs in the coming months from its highest level in over 10 years. Chile and Colombian also declined as equities dipped worldwide. Argentine shares and the currency dropped 3.8 percent as uncertainty over recession and rising inflation fed investor nervousness about the October presidential election. Investors remained uncertain about whether President Mauricio Macri can overcome political fallout from his unpopular fiscal austerity drive to be re-elected in October. Latin American stock indexes and currencies at 2100 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1084.52 -0.48 MSCI LatAm 2734.45 -0.94 Brazil Bovespa 95045.43 -0.92 Mexico IPC 45045.33 -0.23 Chile IPSA 5202.96 -0.27 Argentina MerVal 29746.60 -3.82 Colombia IGBC 12982.77 -0.17 Currencies Latest Daily % change Brazil real 3.9922 -1.8 Mexico peso 19.0678 -0.84 Chile peso 672.8 -0.76 Colombia peso 3219.03 -1.28 Peru sol 3.323 -0.36 Argentina peso 43.9000 -3.35 (interbank) (Reporting by Susan Mathew in Bengaluru, Stéfani Inouye and Laís Martins in Sao Paulo; editing by Grant McCool)

European stocks up for eighth session as oil surge boosts energy stocks

23 Apr 2019

Energy stocks boosted by a steady surge in oil prices, and a higher open on Wall Street helped European shares erase session losses and close higher on Tuesday, but a sell-off in banks and auto stocks kept gains in check. | Video

EMERGING MARKETS-Latam FX weaker; Brazil stocks cut losses on pension progress

22 Apr 2019

(Recasts throughout, updates prices) By Susan Mathew April 22 Latin American currencies weakened in quiet trade on Monday, and most while most regional stock indexes tracked Wall Street lower, pension reform optimism helped Brazil stocks retrace earlier losses to end flat. Following a three-day holiday weekend, Mexico's peso lost 0.3 percent, while the Colombian peso gave up narrow gains from earlier in the session amid surging oil prices. Analysts at Banco Base said in a note that market participants are expected to remain cautious as they await first-quarter U.S. economic data due later this week to gauge global growth momentum. Brazil's real also turned lower against the dollar, with a closely watched survey showing that economists continue to slash economic growth forecasts for Brazil this year, a day ahead of a key congressional vote on pension reforms. But stocks in Sao Paulo rebounded from session losses of up to 0.9 percent and closed flat after Labor and Pensions Secretary Rogerio Marinho said there will be some "minor changes" to the pension bill, but insisted the government will not dilute its targeted savings of 1.1 trillion reais ($280 billion) over the next decade. "An agreement tends to facilitate approval of the matter in the congressional committee by a large majority, which demonstrates an improvement in the government's capacity for political articulation," said Alexandre Soares, a trader at BGC Liquidez. An overhaul of Brazil's bloated pension system is considered crucial to narrowing the country's fiscal deficit. Argentina's currency weakened over 1 percent, while stocks toppled nearly 4 percent, touching their lowest level since the first trading day of the year. Argentina posted a surplus in the first quarter, but ran a primary fiscal deficit of 13.037 billion pesos ($305.32 million) in March. Under a $56.3 billion financing deal with the International Monetary Fund, the government has agreed to wipe out the primary fiscal deficit this year. Gustavo Ber, an economist at consultancy Estudio Ber, also pointed to some negative market response from measures announced last week aimed at reining in inflation and halting the currency's decline. The measures were "interpreted as electoral and transitory, by not addressing the causes of inflation and imbalances," he said. The country heads into general elections in October. Chilean stocks also fell, but Colombian shares rose with higher oil prices aiding a 2 percent rise in state-oil firm Ecopetrol. Key Latin American stock indexes and currencies at 2100 GMT: Stock indexes Latest Daily pct change MSCI Emerging Markets 1,089.03 -0.32 MSCI LatAm 2,759.50 0.13 Brazil Bovespa 94,588.06 0.01 Mexico IPC 45,381.22 -0.32 Chile IPSA 5,234.30 -0.52 Argentina MerVal 30,786.64 -3.9 Colombia IGBC 12,981.60 1.4 Currencies Latest Daily pct change Brazil real 3.9356 -0.09 Mexico peso 18.8268 -0.36 Chile peso 663.9 -0.30 Colombia peso 3,153.88 -0.24 Peru sol 3.304 -0.21 Argentina peso (interbank) 42.5000 -1.41 (Reporting by Susan Mathew in Bengaluru, Paula Arend Laier in Sao Paulo and Walter Bianchi in Beunos Aires; editing by G Crosse)

EMERGING MARKETS-Most Latam shares slip, Brazil pension proposal in focus

22 Apr 2019

By Susan Mathew April 22 Most Latin American stocks dipped in lackluster trade on Monday, in line with world stocks, while Brazil's real rose slightly as investors were encouraged that congress will take up a pension overhaul, while Colombia's peso rose as surging oil prices supported the crude exporter. Returning from Easter extended holidays, stocks in Mexico were little changed while Argentina shares tumbled nearly 4 percent, as Wall Street's lower open tacked on to a dip in Asia shares earlier in the day. Brazil shares fell 0.7 percent, driven by a 2.5 percent decline in mining major Vale on reports that a state parliamentary committee was considering raising a tax on miners in response to the burst of a Vale-owned dam earlier this year which left hundreds dead. Brazil's currency rose as the proposed pension overhaul was to be up for discussion at a congressional committee on Tuesday, after being delayed by a week. But the real gave back most early gains to trade just slightly higher as investors were nervous that possible changes to the plan could dilute projected savings. Meanwhile, threat of a possible truckers' strike over high diesel prices loomed after Brazilian state-run oil firm Petroleo Brasileiro hiked prices last week. A similar strike last year paralyzed Brazil's economy for weeks, led to the departure of the then-CEO at Petrobras and handicapped the government. President Jair Bolsonaro, who took over in January, has been sensitive to the truckers' concerns. "It's an important issue, there's no expectation that it will happen, but if it does, it can signal to the market that there is even more lack of articulation in government than was previously thought," a trader at a national brokerage firm said. Currencies of Mexico and Chile both slipped more than 0.3 percent against a weaker dollar, while the Argentine peso lost more than 2 percent with a JP Morgan risk indicator rising to its highest figure during the presidency of Mauricio Macri who took office in December 2015. Surging oil prices helped net crude exported Colombia's peso tick marginally higher. Key Latin American stock indexes and currencies at 1531 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1089.04 -0.32 MSCI LatAm 2752.83 -0.11 Brazil Bovespa 94121.30 -0.48 Mexico IPC 45505.31 -0.04 Chile IPSA 5246.30 -0.29 Argentina MerVal 30779.98 -3.92 Colombia IGBC 12853.73 0.4 Currencies Latest Daily % change Brazil real 3.9255 0.08 Mexico peso 18.8433 -0.44 Chile peso 664.4 -0.38 Colombia peso 3148.85 0.09 Peru sol 3.305 -0.24 Argentina peso 42.6600 -1.78 (interbank) (Reporting by Susan Mathew in Bengaluru and Laís Martinsin Sao Paulo; Editing by David Gregorio)

EMERGING MARKETS-Emerging shares, FX fall; Indonesia buoyed by election optimism

18 Apr 2019

April 18 Emerging market shares slipped in lacklustre trade on Thursday ahead of a long Easter holiday as they tracked a dip on Wall Street overnight, while developing currencies also lost ground against a stronger dollar.

European shares ease from eight-month high as miners weigh

17 Apr 2019

European shares eased from eight-month highs on Wednesday, weighed down by healthcare and mining stocks while investors looked past better-than-expected first-quarter economic growth in China.

Most Latam currencies rise as dollar weakens

17 Apr 2019

Most Latin American currencies firmed on Wednesday as the dollar weakened after upbeat economic data from China eased some fears of a slowdown in its economy.

EMERGING MARKETS-Emerging shares, currencies cheered by China data but gains limited

17 Apr 2019

April 17 Emerging market shares and currencies firmed on Monday after China's economic growth for the first quarter rose unexpectedly, but gains were limited as doubts remain if it may still be too early to call it a recovery.

EMERGING MARKETS-Latam shares track global rally, currencies weaken

16 Apr 2019

By Susan Mathew April 16 Latin American currencies weakened against a firmer dollar on Tuesday, while most regional stocks rose in line with world stocks as gains on positive data from China and Germany were reinforced by Wall Street's higher open. Mexico's IPC stock index climbed half a percent on broad-based gains, while Chile's IPSA rose for the first time in five days. Argentine shares added 1.6 percent and were on track for their biggest one-day gain in more than two weeks. Regional shares tracked a rally in world stocks that hit a more than six-month high as signs of stabilization in China's economy and positive data from Germany buoyed sentiment. Strong healthcare earnings pushing Wall Street higher cemented the rise. Brazil's Bovespa stock index rose 1.5 percent with state oil firm Petroleo Brasileiro and consumer shares leading gains. Petrobras, as the oil company is known, rose ahead of a meeting between its Chief executive Roberto Castello Branco and Brazilian President Jair Bolsonaro to discuss the diesel pricing policy. The company has been under pressure after it delayed a diesel price hike after a call from Bolsonaro. Castello Branco has denied there was government interference. Petrochemical company Braskem SA was among the biggest drags on the Bovespa after an appeals court in Alagoas state ruled the company's shareholders cannot approve its planned payment of 2.7 billion reais ($697 million) in dividends. The real fell 0.4 percent as leaders of Brazil's largest parties delayed an expected vote to start discussion in parliament on the country's pension reform to next week. "This short delay is a way for the centrist parties to make their voices heard, and may be a preview of the opposition to come when the bill is debated in the special committee," analysts at Citi Research said in a note. House speaker (Rodrigo) Maia's goal to have pension reform approved by the lower house by June-end "is ambitious in our view ... opposition will be strong and risks to a longer approval are high. At this stage we expect the special committee to approve the pension reform in first half of the year," they said. Argentina's currency broke a six-session winning streak to dip 0.8 percent against a dollar strengthened largely by the euro's fall. The Colombian and Mexican pesos both slipped 0.5 percent as lower oil prices added to the net crude exporters' woes. Key Latin American stock indexes and currencies at 1442 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1093.08 0.63 MSCI LatAm 2768.75 0.87 Brazil Bovespa 94514.04 1.54 Mexico IPC 44848.66 0.5 Chile IPSA 5236.28 0.08 Argentina MerVal 32257.64 1.61 Colombia IGBC 12928.41 0.07 Currencies Latest Daily % change Brazil real 3.8832 -0.43 Mexico peso 18.9429 -0.49 Chile peso 663.7 -0.21 Colombia peso 3154.75 -0.53 Peru sol 3.293 0.03 Argentina peso 42.0500 -0.98 (interbank) (Reporting by Susan Mathew in Bengaluru; Editing by Susan Thomas)

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