EMERGING MARKETS-Latam stocks, FX slide as U.S-China trade worries ratchet up - EntornoInteligente

Entornointeligente.com / (Updates prices) By Susan Mathew May 23 (Reuters) – Latin American stocks and currencies slumped on Thursday, in line with a global downturn in sentiment on fears that the U.S-China trade war was escalating into a tech-focused cold war and stemming growth prospects. MSCI’s index of Latin American shares slipped 1.2% at 1943 GMT after three straight days of gains, while its index of regional currencies fell 0.6% with most currencies declining between 0.1% and 1.25%. U.S-China trade tensions flared up with U.S. Secretary of State Mike Pompeo accusing Chinese telecom giant Huawei Technologies of lying about its ties to the government and Beijing saying Washington must end its “wrong actions” if it wanted trade talks to continue. Investors worry about further negative impacts the protracted war will have on global growth, with soft economic data from Germany and the euro zone on Thursday being the latest evidence. The Mexican peso fell for the first time in three days, down 0.4%, while Brazil’s real slipped 0.2%. Plunging oil prices took the currency of net crude exporter Colombia down 1.25% to its lowest since February 2016. Among shares, Mexico’s IPC index slipped 0.3% to a two-month low, while Colombia’s slid 1.6% to touch its lowest in three months. “Equity markets plunge… on the back of worries that the breakdown in trade negotiations between the U.S. and China will turn into a long-lasting trade war,” analysts at Banorte wrote in a note. Colombian state-run oil company Ecopetrol was on course to post its biggest daily drop in more than a month with lower oil prices and sources saying pumping in Bicentenario and Cano Limon oil pipelines – co-operated by Ecopetrol – has been halted following bomb attacks in recent days. Brazil shares fell 0.6% with energy stocks leading losses. Cosmetics firm Natura was the worst performer, down over 8%, a day after its soared 9.4% on agreeing to buy rival Avon Products Inc via a share swap, creating the world’s fourth-largest beauty company. Natura expects to boost revenue by investing in brand and digital capabilities, company executives said on Thursday. Chile stocks hit their lowest in almost 1-1/2 years, while Argentine shares declined after three days of gains. Key Latin American stock indexes and currencies at 1943 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 984.72 -1.33 MSCI LatAm 2587.53 -1.16 Brazil Bovespa 93772.16 -0.62 Mexico IPC 42827.29 -0.27 Chile IPSA 4895.06 -0.52 Argentina MerVal 34080.91 -1.44 Colombia IGBC 11977.81 -1.55 Currencies Latest Daily % change Brazil real 4.0457 -0.14 Mexico peso 19.0620 -0.39 Chile peso 696.8 0.01 Colombia peso 3375.63 -1.25 Peru sol 3.349 -0.24 Argentina peso 45.0700 -0.42 (interbank) (Reporting by Susan Mathew in Bengaluru; Editing by Andrea Ricci)



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