(Updated at 1443 GMT)

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Global tech outage hits Azul, Bradesco, LATAM Airlines

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Embraer ( ERJ ) climbs as deliveries rise 88% in second quarter

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Mexican economy up 0.9% y/y in June, preliminary estimate

shows

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Latam stocks and currencies broadly flat

By Johann M Cherian

July 19 (Reuters) - Most currencies in Latin America

were poised for weekly losses on Friday, as a global tech

outage, lower commodity prices and volatility around U.S.

elections curbed risk taking and investors assessed Brazil's

decision to freeze some spending.

MSCI's index tracking Latam currencies was

flat against the U.S. dollar, but was set to end the week lower

by 1.2%, its biggest weekly drop in over a month.

Copper producer Chile's peso dipped 0.2%, and was on

track for its biggest weekly drop in four months of nearly 4%.

Much of the losses were driven by copper prices that fell to

a three-month low on disquiet about a weak Chinese economy and

the lack of stimulus announcements.

Mexico's peso edged up 0.4% after two straight days

of losses. An initial estimate showed the region's

second-largest economy likely grew by 0.9% in June compared with

the same month a year earlier.

Against the backdrop of sticky inflation, expectations of

slowing economic activity and uncertainty about relations

between the oil exporter and the U.S. in the event of a second

term for U.S. presidential candidate Donald Trump, attention is

on the local central bank's monetary policy path.

"Banxico's growing concerns over the slowdown in economic

activity are likely to prove decisive at upcoming policy

meetings. So, if a rate cut should fail to materialise in

August, we think it would remain on the table for September,"

said Wilson Ferrarezi, an economist at TS Lombard.

Brazil's real inched 0.2% lower, while the yield on

sovereign bonds rose between

15 and 24 basis points (bps).

On Thursday, Finance Minister Fernando Haddad announced

plans to freeze 15 billion reais ($2.70 billion) from the 2024

budget as the government struggles to meet this year's fiscal

target.

The currency is among the biggest losers in the region, down

nearly 13% year-to-date, as traders feared excessive government

spending in the region's largest economy.

An index tracking regional equity indexes

was on track for a weekly loss of 2.9%, its biggest weekly drop

in over a month.

Brazilian carrier Azul, lender Bradesco

and Chile's LATAM Airlines were among the

businesses affected by a global tech outage.

Azul added 3%, while Bradesco was flat and LATAM lost 0.4%.

Brazil's Bovespa rose 0.3%, with Embraer ( ERJ )

jumping 5% after the planemaker said its second quarter

deliveries surged 88% from a year ago.

Argentina's MerVal index rose 2.1%, while yields on

dollar bonds rose

between 10 and 22 basis points (BPS).

BCRA central bank said it had agreed with lenders to

terminate liquidity options contracts worth approximately 13.17

trillion pesos ($14.2 billion), saying this would help to reduce

uncertainty concerning monetary policy.

Key Latin American stock indexes and currencies:

Latin American market

prices from Reuters

Stock indexes Latest Daily %

change

MSCI Emerging Markets 1088.48 -1.58

MSCI LatAm 2256.46 0.17

Brazil Bovespa 128137.94 0.38

Mexico IPC 53229.24 0.35

Chile IPSA 6580.39 0.06

Argentina MerVal 1561544.36 2.142

Colombia COLCAP 1362.33 -0.16

Currencies Latest Daily %

change

Brazil real 5.5455 0.75

Mexico peso 17.8940 0.30

Chile peso 939.1 0.40

Colombia peso 4036.68 0.33

Peru sol 3.7367 -0.18

Argentina peso 924.5000 0.05

(interbank)

Argentina peso 1425 2.11

(parallel)