September 10, 2018 / 8:53 PM / 8 months ago

EMERGING MARKETS-Argentine peso slides on doubts over intervention, IMF talks

 (Updates prices)
    SAO PAULO/BUENOS AIRES, Sept 10 (Reuters) - Argentine
equities and the peso both lost ground on Monday as analysts
said intervention in the foreign exchange market by the nation's
central bank may prove less successful than originally hoped.
    Traders are awaiting the outcome of talks between the
Argentine government and the International Monetary Fund that
began last week. The multilateral lender is contemplating
measures to strengthen its $50 billion financing line with the
nation after a recent rout in the peso, which has fallen some 50
percent against the dollar this year.
    The central bank has auctioned off hundreds of millions of
dollars of reserves in recent days in a bid to stem losses.

    "With the IMF agreement, it's not very clear how far the
central bank is willing to intervene, and it seems that the
(reserve) auctions are not bringing the results that the bank
wants," said Matias Roig, a senior financial adviser at
Portfolio Personal.
    The peso fell 0.94 percent by 1942 GMT,
recovering slightly from earlier in the day, while the benchmark
Merval equities index weakened 1.07 percent. The
Argentine currency has risen or fallen at least 1 percent
against the dollar every day for the last two weeks.
    Across Latin America, equities markets were mixed after U.S.
President Donald Trump on Friday threatened to slap tariffs on
some $267 billion of Chinese goods. 
    In Brazil, where right-wing front-runner Jair Bolsonaro is
recovering from a serious stabbing incident, the benchmark
Bovespa fell 0.29 percent, dipping from a 1 percent
spike earlier in the session.         
    Despite the overall decline, shares of state-run oil company
Petroleo Brasileiro SA climbed more than 1 percent as
oil prices rose.    
    The Brazilian real and Mexican peso were the only major
Latin American currencies to rise on Monday, with the real
 firming 0.26 percent and peso strengthening 0.40
    Mexico's benchmark IPC index fell slightly as
investors wait to see if Canada will join a revamped North
American Free Trade Agreement (NAFTA) with Mexico and the United
    Canadian Foreign Minister Chrystia Freeland will meet U.S.
Trade Representative Robert Lighthizer in Washington on Tuesday
to discuss the trade pact. 

Key Latin American stock indexes and currencies at 1942 GMT:
 Stock indexes             Latest         Daily %   YTD % change
 MSCI Emerging Markets        1010.66        -1.2         -11.69
 MSCI LatAm                   2431.34       -0.91         -13.24
 Brazil Bovespa              76191.02       -0.29          -0.28
 Mexico IPC                  48810.39       -0.33          -1.10
 Argentina MerVal            29491.66       -1.07          -1.91
 Colombia IGBC               11931.25       -0.19           4.93
 Venezuela IBC              339429.12       13.18       26771.85
 Currencies                    Latest     Daily %   YTD % change
 Brazil real                   4.0932        0.26         -19.05
 Mexico peso                  19.2570        0.40           2.30
 Chile peso                     695.6       -0.69         -11.64
 Colombia peso                 3087.3       -1.00          -3.41
 Peru sol                       3.332       -0.18          -2.85
 Argentina peso               37.3300       -0.94         -50.17
 Argentina peso                 36.75       -0.68         -47.67

 (Reporting by Daina Beth Solomon
Editing by Alistair Bell)
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