EMERGING MARKETS-Latam stocks fall with Argentina, Brazil sliding most
(Recasts throughout, updates prices, adds market strategist's quote) By Aaron Saldanha April 9 (Reuters) - Most Latin American stock markets fell along with their global peers on Tuesday, with risk appetite in Brazil hit by a lack of progress on pension reform, while wider sentiment was affected by a U.S. threat for tariffs on European Union goods.
The International Monetary Fund cut its outlook on the global economy and also for Brazil and Mexico, tarnishing sentiment.
Rafael Bevilacqua, chief strategist at independent investment consultancy Levante, said the lack of positive news on the pension reform proposal caused Brazilian stocks to fall, reflecting investors' caution around the proposal's progress.
MSCI's index of Latin American stocks fell half a percent, as losses among stocks in index heavyweights Brazil and Mexico exacted a hefty toll.
Brazil's real dipped 0.1 percent while stocks slid 1.1 percent, with losses incurred in each sector apart from consumer staples.
Common shares and preferred shares of state-run oil firm Petroleo Brasileiro SA (Petrobras) dropped 0.9 percent and 0.3 percent, respectively, tracking lower oil prices.
The preferred shares snapped a three session winning run during which time they tacked on about 6.2 percent, buoyed in part by the $8.6 billion divestment of a 90 percent stake in pipeline unit TAG to an Engie-led consortium.
Shares of Vale SA fell 2 percent. The miner's own and contract workers in Brumadinho are to join a lawsuit for greater total labor claims against the company, after a dam burst in January led to the deaths of 300 people.
Ambev rose 2 percent and was one of the benchmark's few gainers on the day. Credit Suisse said it sees the firm recording a 7 percent rise in beer volumes in Brazil in the first quarter, to go with 12 percent revenue growth.
Mexican stocks fell 0.6 percent, distancing themselves from five-month highs on Monday, while the peso currency edged up.
Annual inflation in Mexico ticked up slightly in March, data showed, spurred by a jump in gasoline prices that has raised red flags with the government.
Argentina's stocks benchmark tumbled 4 percent to reverse the 4.1 percent gain made over the past three sessions.
Chilean stocks ticked 0.1 percent higher, while the currency dipped as local demand for foreign exchange overcame support provided by higher prices of copper, the country's top export.
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"In Chile, pension reform difficulties have been a headwind to the more positive fundamental story," Ilya Gofshetyn, an analyst with Standard Chartered Bank, told the Reuters Global Market Forum.
"Both Chile and Colombia are of course beholden to their respective commodity exports to some degree, Chile more so than Colombia." Colombia's peso firmed 0.4 percent, while stocks slipped 0.1 percent. Oil firm Ecopetrol SA pulled 1.3 percent lower by weak oil prices.
Japan's Softbank Group announced the initial executive investment team for the $5 billion technology growth fund for Latin America.
Latin American stock indexes and currencies at 2105 GMT Stock indexes daily % Latest change MSCI Emerging Markets 1093.44 0.45 MSCI LatAm 2834.12 -0.52 Brazil Bovespa 96291.79 -1.11 Mexico IPC 45151.63 -0.63 Chile IPSA 5281.78 0.13 Argentina MerVal 31743.38 -4.04 Colombia IGBC 13244.14 -0.07 Currencies daily % change Latest Brazil real 3.8501 0.09 Mexico peso 18.9342 -0.02 Chile peso 663.8 -0.02 Colombia peso 3101.45 0.00 Peru sol 3.294 -0.18 Argentina peso (interbank) 43.3500 0.92 (Reporting by Aaron Saldanha in Bengaluru, Additional reporting by Michael Connor in New York and Stefani Inouye in Sao Paulo; editing by Grant McCool)
