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America Movil pursues SpaceX deal, after strong third

quarter

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Brazil to extend fiscal rules' lifespan, says Haddad

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Argentina's trade surplus nears $16 billion under Milei

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Chile rate decision on Thursday

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Latam stocks down 0.2%, FX off 0.6%

(Updated at 2028 GMT)

By Shashwat Chauhan and Johann M Cherian

Oct 16 (Reuters) - Mexico's peso hit a one-month low on

Wednesday and led declines among currencies in Latin America,

while a rebound in copper prices helped gains in top exporter

Chile's peso.

Mexico's peso depreciated 1.2%, having fallen more

than 3% this week against a stronger dollar, as investors priced

in a likelihood of Republican candidate Donald Trump in the

White House, just weeks away from pivotal U.S. Presidential

elections.

The former president has proposed to impose tariffs of more

than 200% on vehicles imported from the region's second-largest

economy, one of the engines of Mexican economic activity.

Further, Trump's policies to cut taxes and ease

financial regulations could stoke inflation pressures and rattle

the U.S Federal Reserve's monetary easing cycle, thereby

increasing appetite for the greenback.

However, Paul Donovan, Chief Economist at UBS Global Wealth

Management said, "U.S. and European investors have viewed

proposed tariffs as a bargaining device, not to be taken

seriously. However, the repeated theme of trade taxes implies

the policy is important."

Iron ore exporter Brazil's real slipped 0.2% after

falling 1% in the last session, as prices of the base metal fell

on the prospect of weakening global demand..

With the country's high level of spending under scrutiny,

Finance Minister Fernando Haddad said the region's biggest

economy aims to ensure the longevity of its fiscal rules with a

set of spending control measures to be announced this year.

However, yield on sovereign bonds

rose over 20 basis points each.

Bucking the trend, the world's biggest copper producer

Chile's peso appreciated 1%, as prices of the red metal

rebounded after the market stabilized at a technical support

level.

Later in the week, Chile's central bank is expected to

lower its benchmark interest rate by 25 basis points to 5.25%.

Fellow copper producer Peru's sol was flat, while

Colombia's peso dipped 0.2%, to touch a one-month low.

Uncertainty over the magnitude of stimulus from leading

commodities consumer China has added to expectations of reduced

demand, pressuring currencies in the region. An index tracking

Latin American currencies fell 0.6%.

Traders are pricing the Federal Reserve to cut rates in

November by a smaller 25 basis points, further aiding the

dollar's gains. On Thursday, U.S. retail sales reading and

jobless claims data could set the tone for market expectations

around the Fed's rate path.

A gauge for local stock indexes was down

0.2%, although Brazil's Bovespa added 0.5% helped by

communication services stocks.

Mexico's main index added 0.2% with America Movil

jumping 3.2% after it more than tripled its net profit

in the third quarter from a year ago. The telecommunications

giant is also exploring an agreement with Elon Musk's SpaceX.

Argentina's MerVal index slid 2%. The country likely

had a trade surplus for the tenth straight month in September

under libertarian President Javier Milei.

Key Latin American stock indexes and currencies:

Latin American market

prices from Reuters

MSCI Emerging Markets 1143.72 -0.52

MSCI LatAm 2185.58 -0.17

Brazil Bovespa 131668.32 0.48

Mexico IPC 52503.03 0.24

Chile IPSA 6542.64 -0.25

Argentina Merval 1776060.5 -2.213

1

Colombia COLCAP 1337.26 0.63

Brazil real 5.6606 -0.18

Mexico peso 19.9179 -1.19

Chile peso 933 1

Colombia peso 4256.66 -0.25

Peru sol 3.7622 0.05

Argentina peso 980 0.00

(interbank)

Argentina peso (parallel) 1200 2.92