UPDATE 1-EMERGING MARKETS-Brazil stocks slide, Mexico stocks and peso rise

(Updates prices)
SAO PAULO, June 8 (Reuters) – Brazilian equities extended
their recent slide amid political and fiscal worries on Friday,
while Mexican stocks and currency advanced.
Stocks on the benchmark Bovespa stock index tumbled
across the board for a fourth straight session, as traders
continued to fret ahead of an unpredictable October election in
which market-friendly candidates have failed to gain traction,
according to recent polls.
Recent government intervention in oil company Petroleo
Brasileiro SA has also caused traders to question the
resolve of the current government – and the ability of the next
one – to stay on a path of pro-market policies and relative
fiscal austerity.
“It’s still an uncertain scenario, without a positive
conclusion coming to light for local financial markets,” said a
Rio de Janeiro-based trader.
The Bovespa index was down 1.23 percent in late morning
trade, after falling almost 3 percent earlier in the session.
After a punishing week for the Mexican peso, the currency
recovered on Friday, up 1.06 percent in afternoon trading.
Investors are closely watching the Group of Seven summit in
Canada and were encouraged by the fact that U.S.
Donald Trump did not intensify his rhetoric on trade, analysts
Mexico’s benchmark index IPC was up 1.
02 percent in
afternoon trading.
In neighboring Argentina, the peso fell sharply
against the dollar after the country signed a $50 billion
standby financing arrangement with the International Monetary
Fund, causing the central bank to abandon its spirited defense
of the currency.
“I think (the) USD/ARS upward trend should remain intact,”
said Win Thin, Global Head of Emerging Market Currency Strategy
at Brown Brothers Harriman in New York.
“Once the IMF deal was reached in principle, I’m sure that
Argentina was asked to take FX intervention off the table.
thing the IMF wants to see is its program money burned away by
FX intervention.”
The Argentine peso was down 1.
25 percent at 25.3 per dollar
in late afternoon trading.

Key Latin American stock indexes and currencies at 2015 GMT:

Stock indexes Latest Daily YTD pct
pct change
MSCI Emerging Markets 1,137.69 -1.
04 -0.76

MSCI LatAm 2,510.
55 2.5 -13.

Brazil Bovespa 72,942.07 -1.
23 -4.53
Mexico IPC 45,939.
54 1.02 -6.
Chile IPSA 5,510.67 0.
78 -0.97
Chile IGPA 27,885.
75 0.79 -0.
Argentina MerVal 31,454.66 4.
23 4.62
Colombia IGBC 12,251.
57 -0.09 7.
Venezuela IBC 40,543.53 1.
71 3,109.74

(Reporting by Gram Slattery; additional reporting by Paula
Arend Laier in Sao Paulo, Rodrigo Campos in New York, and Sheky
Espejo; editing by G Crosse and Diane Craft)
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