EMERGING MARKETS-Latam stocks, FX set for weekly gains; Argentina stocks outperform peers

* Argentima’s Merval index sees best week ever * Mexico’s Q3 GDP data better than expected * Stocks down 0.3%, FX up 0.2% By Shubham Batra Nov 24 (Reuters) – Latin American stocks fell on Friday, hurt by losses in Brazilian stocks, but Argentina’s Merval index outperformed peers and was set to log its best week ever after election of Javier Milei as Argentina’s president. Both stocks and currencies were set for a second week of gains as the dollar remained weak on expectation that U.S. interest rates have peaked. MSCI’s index tracking Latin American equities slid 0.3%, led by a 0.6% decline in Brazil’s Bovespa. Brazil’s Petrobras slipped 0.5%. The company said it will invest around $102 billion within the 2024-2028 period, representing a major boost in expected investments by the state-run oil company. Meanwhile, Brazilian Finance Minister Fernando Haddad said that the government will introduce a set of measures to address the situation of 17 sectors affected by a presidential veto to a bill aimed at extending a payroll tax exemption. Liming losses for equities, Argentina’s S&P Merval index soared 1.5% and hit a record high. The index is on track to log its best week ever. Continuing his signature campaign pledge, Argentina’s President-elect Javier Milei on Friday said that the closure of the country’s central bank was a “non-negotiable matter”, according to a statement from his office posted on social media platform X. Goldman Sachs in a note on Friday said, “We remain attentive to any economic policy announcement by elected-president Milei, as well as his appointment of the next finance minister.” Regional currencies, though, inched 0.2% higher, with Colombian peso leading the gains, rising 0.6% against a softer dollar. Mexican peso climbed 0.5% against the greenback after data showed Mexico’s economy grew 1.1% in the third quarter from the previous three-month period, slightly above preliminary estimates a month ago and a Refinitiv poll at 0.9%. Brazilian real also gained 0.4% against the dollar. Both the currencies were also supported by steady oil prices, with the Brent crude futures hovering above $81 a barrel on Friday as traders kept their powder dry ahead of next week’s OPEC+ meeting, which could bring some kind of agreement on output cuts in 2024. Chile’s peso was flat even as copper prices were set for a second consecutive weekly gain, helped by efforts to support the property market in top metals consumer China, a weaker dollar and improved risk appetite in financial markets. Key Latin American stock indexes and currencies at 1455 GMT: Stock indexes Latest Daily % YTD % change change MSCI Emerging Markets 980.71 -0.75 3.34 MSCI LatAm 2464.14 -0.32 17.94 Brazil Bovespa 125895.31 -0.54 14.73 Mexico IPC 52745.37 -0.59 8.83 Chile IPSA 5801.45 -0.1 10.26 Argentina MerVal 892609.97 1.552 341.70 Colombia COLCAP 1134.31 0.58 -11.6 Currencies Latest Daily % YTD % change change Brazil real 4.8884 0.36 -32.22 Mexico peso 17.0961 0.48 15.23 Chile peso 873.2 -0.02 -29.61 Colombia peso 4043.26 0.50 -26.25 Peru sol 3.735 -0.25 -13.33 Argentina peso 357.5000 -0.11 -94.80 (interbank) Argentina peso 1005 3.98 -98.09 (parallel) (Reporting by Shubham Batra in Bengaluru Editing by Alistair Bell)