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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

(Updated at 3:31 p.m. ET/1931 GMT)

By Johann M Cherian and Shashwat Chauhan

July 19 (Reuters) - Most currencies in Latin America

were headed for weekly declines on Friday, as a global tech

outage, lower commodity prices and jitters about the upcoming

U.S. elections curbed risk taking and investors assessed

Brazil's decision to freeze some spending.

MSCI's index tracking Latam currencies was

down 1%, set to end the week lower by over 2%, its biggest

weekly drop in over a month.

Copper producer Chile's peso dipped 0.5%, and was on

track for its biggest weekly drop in four months of over 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 extended losses to a fourth straight

session and was last down 0.8%. 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.

In Brazil, the real shed 1%, 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.

"All things considered, we note that, even though this is a

positive first freeze made by the administration, it still is

insufficient to deliver the yearend primary fiscal result within

the target," strategists at Citi wrote in a morning note.

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

nearly over 15% year-to-date, as traders feared excessive

government spending in the region's largest economy.

Bucking the trend, Colombia's peso appreciated 0.3%

against the dollar after falling for the last four sessions.

An index tracking regional equity indexes

was on track for a weekly loss of around 3%.

Brazilian carrier Azul, lender Bradesco

and Chile's LATAM Airlines were among the

businesses affected by a global tech outage.

Azul added over 2%, while Bradesco was flat and LATAM lost

0.5%.

Brazil's Bovespa was last down about 0.1%. Embraer ( ERJ )

jumped 2.1% after the planemaker said its second

quarter deliveries surged 88% from a year ago.

Argentina's MerVal index rose 2.4%, while Mexico's

benchmark last up 0.9%.

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:

Latest Daily % change

MSCI Emerging Markets 1087.76 -1.64

MSCI LatAm 2236.50 -0.71

Brazil Bovespa 127565.70 -0.07

Mexico IPC 53508.39 0.88

Chile IPSA 6556.08 -0.31

Argentina MerVal 1565592.86 2.407

Colombia COLCAP 1366.02 0.11

Currencies Latest Daily % change

Brazil real 5.6010 -0.25

Mexico peso 18.0828 -0.75

Chile peso 946.9 -0.42

Colombia peso 4037.5 0.31

Peru sol 3.7367 -0.18

Argentina peso 924.0000 0.11

(interbank)

Argentina peso 1425 2.11

(parallel)