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EMERGING MARKETS-LatAm currencies weaken as Trump woes spark risk-aversion
May 17, 2017 / 3:18 PM / 5 months ago

EMERGING MARKETS-LatAm currencies weaken as Trump woes spark risk-aversion

    By Bruno Federowski
    SAO PAULO, May 17 (Reuters) - Latin American currencies
weakened on Wednesday as speculation U.S. President Donald Trump
could face the threat of impeachment triggered worldwide
profit-taking on riskier assets.
    The Brazilian real slipped 0.4 percent, while the
Mexican peso fell as much as 0.7 percent before paring
gains to trade nearly flat. Both currencies had strengthened in
the last six trading days.
    News reports emerged on Tuesday that Trump had asked
then-Federal Bureau of Investigation Director James Comey to end
the agency's investigation into ties between former White House
national security adviser Michael Flynn and Russia.
    The reports fueled questions over whether Trump could be
charged with obstruction of justice, potentially opening the
doors for an early exit from office.
    Uncertainty over his future drove investors away from
higher-risk assets, while also fostering doubt over the
implementation of his fiscal expansion pledges, traders said.
    Stock markets also fell, with MSCI's emerging markets equity
index down 0.6 percent. MSCI's Latin American stock
index underperformed following a 6 percent rally
in the last six sessions.
    All of Latin American benchmark stock indexes were down,
with Mexico's IPC the worst performer.
    Shares of bottler and retailer Fomento Economico Mexicano
(Femsa) subtracted the most points from the index
after Coca-Cola Femsa, a joint venture with Coca-Cola Co,
ditched plans to acquire certain territories in the United
States.    
    
    Key Latin American stock indexes and currencies at 1445 GMT:
 Stock indexes                              daily %    YTD %
                                Latest       change   change
 MSCI Emerging Markets            1009.49     -0.55    17.72
                                                     
 MSCI LatAm                       2725.63      -1.3    17.98
                                                     
 Brazil Bovespa                  67866.86     -1.19    12.68
                                                     
 Mexico IPC                      48945.98     -1.04     7.24
                                                     
 Chile IPSA                       4849.69     -0.53    16.82
                                                     
 Chile IGPA                      24343.98     -0.43    17.41
                                                     
 Argentina MerVal                21749.94     -0.38    28.56
                                                     
 Colombia IGBC                   10738.21     -0.82     6.02
                                                     
 Venezuela IBC                   65396.82      1.52   106.27
                                                     
                                                            
 Currencies                                 daily %    YTD %
                                             change   change
                                   Latest            
 Brazil real                       3.1072     -0.40     4.57
                                                     
 Mexico peso                      18.6525     -0.01    11.21
                                                     
 Chile peso                        667.91     -0.19     0.42
                                                     
 Colombia peso                       2885     -0.30     4.04
 Peru sol                           3.269     -0.12     4.44
                                                     
 Argentina peso (interbank)       15.6250     -0.26     1.60
                                                     
 Argentina peso (parallel)          16.02      0.19     4.99
                                                     
 
 (Reporting by Bruno Federowski; Editing by Andrea Ricci)
  

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