Sectors Shares

Brazil stocks dip, NAFTA talks boost Mexico peso

(Recasts with peso gains, updates prices)
By Bruno Federowski
BRASILIA, May 23 (Reuters) - Brazilian stocks sank on
Wednesday after comments by U.S. President Donald Trump
reignited global trade worries, while Mexico's peso strengthened
on news that talks have continued to rework the North American
Free Trade Agreement.
Brazil's benchmark Bovespa index fell nearly 2
percent as shares of state-run power company Eletrobras
tumbled after lawmakers torpedoed hopes for a
privatization of the company in the near future.
Globally, stocks suffered after Trump signaled a new
direction in U.S.-China trade talks and said any deal would need
"a different structure," fueling uncertainty over current
Fears that a trade war between the world's top two economies
could damage global growth have kept a lid on appetite for risky
assets in recent months.
In Mexico, stocks rose slightly for the second session in a
row as the benchmark IPC index bounces back from a
1-1/2-year low.
The Mexican peso strengthened about 1 percent after reports
pointed towards movement on the renegotiation of NAFTA with
Canada and the United States.
Trump, who has threatened to scrap the trade pact, said on
Wednesday that "big news" was coming for U.S. auto workers,
suggesting a link to NAFTA talks.
Auto trade has been one of the biggest obstacles in forging
an update to the 24-year-old accord.
Meanwhile, Mexican deputy economy minister Juan Carlos Baker
has been in Washington this week to continue talks with U.S.
officials, sources told Reuters.
Analysts at Mexico's Banco Base said the news reports helped
the peso, but warned the currency could face renewed pressure if
NAFTA talks don't conclude in the coming weeks.

Key Latin American stock indexes and currencies at 1945 GMT:

Stock indexes daily % YTD %
Latest change change
MSCI Emerging Markets 1136.34 -0.5 -1.42

MSCI LatAm 2732.25 -0.4 -3

Brazil Bovespa 81222.36 -1.83 6.31

Mexico IPC 45860.57 0.57 -7.08

Chile IPSA 5629.52 -0.38 1.17

Chile IGPA 28471.74 -0.24 1.75

Argentina MerVal 30251.19 -2.39 0.62

Colombia IGBC 12068.92 -0.51 6.14

Venezuela IBC 24732.87 7.59 1858.05

Currencies daily % YTD %
change change
Brazil real 3.6298 0.39 -8.72

Mexico peso 19.5650 1.07 0.68

Chile peso 622.75 0.19 -1.30

Colombia peso 2873.25 -0.75 3.78
Peru sol 3.264 0.21 -0.83

Argentina peso 24.4700 -0.69 -23.99

Argentina peso 25.35 0.20 -24.14

(Reporting by Bruno Federowski and Daina Beth Solomon
Editing by Alistair Bell)

First Published: 2018-05-23 18:22:21
Updated 2018-05-23 23:26:40

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