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EMERGING MARKETS-Latam currencies fall, Mexican peso snaps four-day winning streak

    * Mexican peso falls for first time in five sessions
    * Brazil real reverses early gains to turn lower
    * Trump calls off coronavirus relief talks, hurts risky
assets  

 (Updates prices throughout)
    By Shreyashi Sanyal
    Oct 6 (Reuters) - Latin American currencies turned lower on
Tuesday, with Mexico's peso falling for the first time in five
sessions following a strong start to the week fueled by the
country's new infrastructure investment plan.
    The real fell 0.6%, after rising about 0.8% in
the session, while the Mexican peso fell 1%. Currencies
in Latin America started the week stronger following improving
services sector data from Brazil and Mexico's unveiling of an
almost $14 billion infrastructure plan.
    Analysts say the fourth quarter will be volatile for
currencies in the region due to continued fears about Brazil's
public finances and the impact of the Nov. 3 U.S. presidential
election on Mexico.
    Brazil's real is among the worst-performing emerging market
currencies this year, down nearly 30%, while the Mexican peso
has fared somewhat better as Mexico's main trading partner, the
United States, has shown signs of an economic rebound. 
    The International Monetary Fund on Monday revised its 2020
economic outlook for Brazil higher, but warned that risks remain
"exceptionally high and multifaceted" and government debt is on
course to end the year at around 100% of gross domestic product.
    However, supporting sentiment in Brazil, Economy Minister
Paulo Guedes and Rodrigo Maia, the speaker of the country's
lower house of Congress, left a dinner with other officials on
Monday promising to return to work together on the government's
economic agenda.
    "They reinforced the need to comply with the spending cap
and to accelerate the approval of reforms, in line with Guedes'
wishes," emerging markets and FX strategists at Citigroup noted,
though they added they remained skeptical of the positive
outcomes and say public spending will surpass the limit in 2021.
    Amid doubts about Brazil's fiscal health, the new aid
program proposed by President Jair Bolsonaro's government has
been one of the most recent points of friction between Guedes
and Congress.
    The MSCI's index for Latin American currencies
 fell 0.3%.
    Stocks on Wall Street sold off, while the dollar fell after
U.S. President Donald Trump called off negotiations with
Democratic lawmakers on coronavirus relief legislation until
after the election.
    In Argentina, the country is looking to tempt wary investors
with a dollar-linked bond being auctioned on Tuesday. The
country is struggling with a domestic currency crisis, stringent
capital controls and tumbling foreign reserves.
    
    Key Latin American stock indexes and currencies at 1941 GMT:
    
            Stock indexes                    Latest   Daily %
                                                      change
 MSCI Emerging Markets                       1100.63     0.85
 MSCI LatAm                                  1854.99    -0.14
 Brazil Bovespa                             95599.13    -0.51
 Mexico IPC                                 36870.69     0.35
 Chile IPSA                                  3620.93    -1.49
 Argentina MerVal                           44420.63    0.333
 Colombia COLCAP                             1171.93     0.33
                                                             
               Currencies                    Latest   Daily %
                                                      change
 Brazil real                                  5.5981    -0.56
 Mexico peso                                 21.6380    -1.18
 Chile peso                                    798.2    -0.10
 Colombia peso                               3831.25    -0.09
 Peru sol                                     3.5827     0.14
 Argentina peso (interbank)                  77.0600    -0.05
                                                      
 Argentina peso (parallel)                       148     1.35
 
 (Reporting by Shreyashi Sanyal in Bengaluru; Editing by Paul
Simao and Richard Chang)
  
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