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EMERGING MARKETS-Q2 results hit Brazilian equities, Mexican peso slides

(Updates prices) SAO PAULO, July 31 (Reuters) - Brazil's benchmark Bovespa equities index tumbled 1.3 percent on Tuesday as poor quarterly results in the financial services and retail sectors and a federal police price-fixing probe hit shares, while the Mexican peso slipped after a long rally.

Among firms that reported disappointing second-quarter results on Monday evening were Cielo SA, Brazil's largest credit card processor, Itau Unibanco Holding SA , the country's top private lender, and RD, the nation's No. 1 over-the-counter drug retailer.

All three were down at least 2 percent at one point in morning trade after missing profit estimates. Cielo was the Bovespa's biggest loser, falling nearly 10 percent, its biggest intraday drop since 2016, after increased competition hit margins.

Fuel companies Ultrapar Participacoes SA, Cosan SA and Petroleo Brasileiro SA, as well as recently floated distribution unit Petrobras Distribuidora SA , also fell sharply after police in the southern state of Parana said they were investigating a wide-ranging gas price fixing scheme.

Adding to the sell-off, traders said they were taking profits, especially in banking stocks, after the Bovespa climbed over 10 percent so far in July.

"The rise this month also opened space for realizing some profits, especially with banks, which rose more than double digits," said Vitor Suzaki, an analyst at Sao Paulo-based Lerosa Investimentos.

In Mexico, the peso weakened 0.34 percent after the country's gross domestic product contracted during the second quarter. The peso had strengthened for seven straight sessions.

The country's benchmark stock exchange edged 0.01 percent lower as investors booked profits after second-quarter earnings reports.

Across Latin America, most currencies posted moderate losses on Tuesday in the lead-up to a Federal Reserve interest rate decision on Wednesday. The Fed is expected to keep rates unchanged, but solid U.S. economic growth combined with rising inflation are likely to keep it on track for another two hikes this year.

Key Latin American stock indexes and currencies at 19:47 GMT: Stock indexes daily YTD % % chang Latest chang e e MSCI Emerging 1088.37 -0.16 -5.9 Markets MSCI LatAm 2706.12 -1.15 -3.2 Brazil Bovespa 79185.48 -1.36 3.64 Mexico IPC 49666.47 -0.08 0.63 Chile IPSA 5433.06 0.94 -2.36 Chile IGPA 27348.47 0.83 -2.26 Argentina MerVal 29252.39 0.07 -2.70 Colombia IGBC 12193.28 -0.81 7.23 Venezuela IBC 89351.79 0 6973.

78 Currencies daily YTD % % chang chang e Latest e Brazil real 3.7526 -0.62 -11.7 1 Mexico peso 18.6080 -0.34 5.86 Chile peso 637.2 0.09 -3.54 Colombia peso 2888.1 -0.63 3.25 Peru sol 3.272 -0.06 -1.07 Argentina peso 27.4100 -0.53 -32.1 (interbank) 4 Argentina peso 28.2 0.71 -31.8 (parallel) 1 (Reporting by Gram Slattery and Paula Arend Laier; additional reporting by Julia Love Editing by Frances Kerry and James Dalgleish)