|Day's Range||5,041.52 - 5,072.83|
|52 Week Range||5,041.52 - 5,072.83|
The U.S. Federal Reserve and the European Central Bank both held on rates and said they were likely to do so in the near term. Emerging markets, which have largely mimicked the Fed's easing cycle this year, have found support from major central banks adopting an accommodative stance in the face of an economically damaging trade war between the United States and China.
* Trump to restore tariffs on metal imports from Brazil, Argentina * Latam FX gain as dollar drops after weak U.S. manufacturing data * Brazil stocks rise after strong manufacturing data * Chilean peso firms as central bank intervention kicks in By Susan Mathew Dec 2 (Reuters) - A dollar weakened by poor U.S. economic data helped Latin American currencies brush off the re-imposition of U.S. tariffs on steel and aluminum imports from Brazil and Argentina on Monday. Brazil's real firmed 0.4% with a spot auction by the central bank supporting the currency, while the Argentine and Mexican pesos were flat against a dollar that slid on weak U.S. manufacturing data. Surprising officials in the two South American countries, U.S. President Donald Trump said on Monday he would restore tariffs on U.S. steel and aluminum imports, accusing them of devaluing their currencies to the detriment of U.S. farmers.
MSCI's index for Latin American currencies slipped 0.3%, resuming its downward trend as it fell for the tenth time in the last eleven sessions. Sentiment took a hit earlier in the day after CNBC reported that the mood in Beijing was "pessimistic" because of U.S. President Donald Trump's reluctance to roll back tariffs.
Chile's peso slid 1.5% to 737.53 to the dollar, an all-time low and stocks tumbled 3.1% to a eight-week trough. The country's manufacturing production dropped in September from a year ago amid a decrease in mining production, government data showed. Analysts worry about deteriorating economic activity in Chile - the world's biggest producer of copper as a recent political crisis has seen union workers at BHP's Escondida copper miner go on strike.
Adding to overall optimism, the U.S. Trade Representative's office said U.S. and Chinese trade officials were "close to finalizing" some parts of an agreement.
MSCI's index of Latin American stocks and currencies slipped between 0.6% and 1%. Brazil's real fell for a third-straight session. Chile's peso fell to their lowest level since January 2016 as prices of copper, the country's top export, slipped.
The Sao Paulo. index rose 1%, with materials stocks pushing up the index the most. Chilean stocks rose about 0.3% and were slated for a seventh straight session of gains. The Mexican peso rose about 0.4% to near a one-month high.
MSCI's index of Latin American stocks rose 1.3%, holding near a one-month high, mirroring gains across global stock markets.
With the dollar on the backfoot, the Mexican peso jumped 1% to touch a three-week high on Friday, while currencies of Brazil, Colombia, Chile and Argentina rose between 0.43% and 0.86%.
After a day of relief on news that Washington would delay 10% tariffs on some Chinese goods, currencies in Brazil, Mexico, Colombia all fell well more that 1%, while Chile's peso slipped a percent. Regional stocks also slid, with Mexico's main index sinking to its lowest in more than 5 years, while Brazil's main index tumbled 3% and was on track for its worst day in 4-1/2 months. At the bottom of Brazil's main index were shares of education company Kroton SA down nearly 10% after weaker-than-expected quarterly results, followed by planemaker Embraer which reaffirmed it would report a loss for 2019.