EMERGING MARKETS-Brazil stocks dip on pension caution, Latam forex weakens

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Jan 17 (Reuters) – Brazil stocks fell as investors waited for details on a pension reform plan and Latin American currencies retreated against the U.S. dollar on diminished risk appetite over worries about China’s economic outlook and its trade row with the United States. Brazil’s benchmark index fell 0.2 percent with banks leading declines as investors waited for any details on the new government’s pension reform agenda, which could be outlined after President Jair Bolsonaro returns from the Jan. 22-25 annual World Economic Forum in Davos. “Certainly (the US-China issue) is one of the factors that causes more caution,” said Silvio Campos Neto of Tendencias Consultoria. “But we are also on standby due to internal issues like expecting disclosure of the details of the social security reform,” he added. A negative outlook from global banks on volatility in the bond market through the end of 2018 also weighed on banking stocks, which have fallen through the week. Brazilian planemaker Embraer, in the midst of a major deal with Boeing, extended losses after several brokerages cut price targets on the stock after the company lowered its revenue projection for 2018. Retailer Via Varejo, which topped gains on the index for the last two sessions, sunk to emerge as the biggest decliner on the index as investors booked profits. Currencies in the Latin American region fell with Brazil’s real losing over 0.8 percent, the most in two weeks, while Mexico’s peso fell 0.7 percent, coming off three-month highs in the previous session, as falling oil prices weighed on the crude exporting country. The Chilean peso weakened in line with a drop in the price of copper, the country’s main export, while stocks fell for the first time in 14 sessions.

Key Latin American stock indexes and currencies at 1415 GMT

Stock indexes daily % Latest change MSCI Emerging Markets 1006.80 -0.26 MSCI LatAm 2813.95 -0.7 Brazil Bovespa 94207.89 -0.2 Mexico IPC – – Chile IPSA 5406.71 -0.23 Argentina MerVal – – Colombia IGBC – – Currencies daily %

change Latest

Brazil real 3.7606 -0.72 Mexico peso 19.0173 -0.69 Chile peso 670.36 -0.27 Colombia peso – – Peru sol – – Argentina peso (interbank) – –

(Reporting by Agamoni Ghosh in Bengaluru; Additional reporting Editing by Susan Thomas)