US economic growth slows in first quarter; inflation
surges
Lower iron, nickel and copper prices weigh on Vale's
earnings
Cement maker Cemex's Q1 profit climbs despite dip in
volumes
Latam FX off 0.4%, stocks down 0.5%
The Mexican peso led losses among Latin American currencies on Thursday, after hotter-than-expected U.S. inflation data reignited concerns that the Federal Reserve would delay cutting interest rates.
The MSCI index for Latin American currencies .MILA00000CUS slid 0.4% by 1500 GMT.
The peso MXN= weakened 1.1% against the dollar on the news of sticky U.S. inflation.
"What seems to be now causing some havoc across markets is the thought that we may witness a cycle of 'stagflation' in the U.S., a time when the economy stagnates while prices remain elevated without reprieve," said Juan Perez, director of trading at Monex.
"LATAM odds of exercising loose monetary policy and stay stimulative are basically cemented."
Other Latin American currencies such as the Brazilian real BRL= and Colombia's peso COP= shed 0.5% and 0.7%, respectively, against the greenback.
Bucking regional weakness, top copper producer Chile's peso CLP= rose 0.2%, tracking firm prices of the metal as funds chased the market higher after a takeover bid by BHP for Anglo American, which analysts said was focused on copper.
Stocks in Latin America .MILA00000PUS fell 0.5%. Mexican stocks .MXX eased 0.1% as Arca Continental AC.MX shares fell 2.1% after the bottler's first-quarter profit was eroded by the strong Mexican peso.
Cement-maker Cemex CEMEXCPO.MX shed 1.2% after reporting lower operating earnings, even though first-quarter net profit rose 13% on lower taxes and less exposure to financial derivatives.
Brazil's Bovespa index .BVSP fell 0.4%, as heavyweight miner Vale VALE3.SA weakened after it said lower prices for iron ore, nickel and copper in the first quarter dragged down earnings from the year-ago period.
Argentina's MerVal .MERV rose 1.2% as stocks rebounded after two days of sharp losses.
Turkey's lira TRYTOM=D3 was mostly flat after the country's central bank kept its main interest rate steady at 50%, as expected.
Sri Lanka's central bank said it is paramount that the country stick to its Extended Fund Facility agreement with the International Monetary Fund and complete its debt restructuring process, it said in a report issued on Thursday.
Key Latin American stock indexes and currencies at 1500 GMT:
Stock indexes Latest Daily %
change
MSCI Emerging Markets 1027.76 -0.67
.MSCIEF
MSCI LatAm 2407.33 -0.56 .MILA00000PUS
Brazil Bovespa 124188.19 -0.44 .BVSP
Mexico IPC 56423.66 -0.07 .MXX
Chile IPSA 6321.93 -0.65 .SPIPSA
Argentina MerVal 1216873.29 1.181 .MERV
Colombia COLCAP 1345.39 0.15 .COLCAP
Currencies Latest Daily %
change
Brazil real 5.1701 -0.45
BRBY
Mexico peso 17.2625 -1.20 MXN=D2
Chile peso 949.8 -0.02 CLP=CL
Colombia peso COP= 3969.6 -0.77
Peru sol 3.7413 -0.66
PEN=PE
Argentina peso 873.5000 0.00 (interbank) ARS=RASL
Argentina peso 1020 1.47 (parallel) ARSB=
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