*

Peru interest rate decision on Wednesday

*

JPMorgan downgrades Mexican stocks, upgrades Brazil

*

Latam stocks down 2.8%, FX slips 1.2%

(Updates with mid-session trading)

By Shashwat Chauhan and Purvi Agarwal

March 10 (Reuters) - Latin American stocks tracked a

Wall Street selloff on Monday on growing concerns that a

tariff-induced global trade war could trigger a U.S. economic

slowdown, while currencies slipped against a gaining dollar.

U.S. President Donald Trump declined to predict over the

weekend whether the country could face a recession after he

slapped additional tariffs on Mexico, Canada and China.

"Uncertainty around U.S. policy trade and fiscal cuts has

translated to serious concern about the growth outlook, which

resulted in the worst weekly performance for the dollar in over

a year (last week)," said analysts at LMAX Group.

"The market is deeply distressed given all of the

unpredictability."

Trump's tariffs have stoked market volatility after the

president late last week suspended for a month the 25% tariffs

on Canadian and Mexican goods which had come into effect on

March 4.

Latam currencies weakened against the dollar, with the

Brazilian real down 1.1%.

Currencies in export-heavy Chile and Colombia

also dipped 1.5% and 1.1%, tracking heavy losses in

copper and oil.

MSCI's stocks gauge for Latin American currencies

fell 1.2%, on track for its worst day since

early December. The stocks gauge plunged 2.8%,

eyeing its worst day since June 2024, in line with a drop on

Wall Street.

All regional bourses were in the red, with Argentina's

Merval down 6.8% while Mexican stocks slipped

2.7%, both on track for its worst days since July 2024. Brazil's

Bovespa dipped 0.9%.

JPMorgan downgraded Mexican stocks due to slower economic

growth and U.S. tariffs, while taking a bullish stance on

Brazilian equities, citing the potential end of an interest rate

hiking cycle and a boost from China's stimulus measures.

U.S. inflation readings will be closely watched later this

week, as worries of an economic slowdown and Trump's tariffs

possibly stoking price pressures have led markets to reprice

expectations of Federal Reserve interest rate cuts, now betting

for three, up from two previously, as per LSEG data.

Disappointing data out of China also weighed. The country's

consumer price index fell at the sharpest pace in 13 months in

February, while producer price deflation persisted, potentially

impacting commodity prices.

Investors also awaited Argentina's fresh

loan deal

with the International Monetary Fund that could strengthen

its economic plan.

Data showed Colombia's

inflation

rose more than expected in February, likely keeping

policymakers inclined to hold interest rates steady at their

March meeting.

Peru's central bank is set to announce its latest monetary

policy decision on Wednesday, while this week also brings

inflation readings from Brazil.

Highlights:

**

Chile's Codelco copper output dips 4% in January

** Bank of Israel stays cautiously optimistic on inflation,

rates outlook

Key Latin American stock indexes and currencies:

MSCI Emerging Markets 1111.65 -1.5

MSCI LatAm 1977.04 -2.84

Brazil Bovespa 123917.48 -0.89

Mexico IPC 51399.52 -2.73

Chile IPSA 7369.67 -0.1

Argentina Merval 2107671.1 -6.84

6

Colombia COLCAP 1587.73 -1.41

Brazil real 5.853 -1.13

Mexico peso 20.3791 -0.71

Chile peso 943.4 -1.52

Colombia peso 4179.75 -1.05

Peru sol 3.669 -0.44

Argentina peso (interbank) 1065.25 0.02

Argentina peso (parallel) 1205 0.83