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Chile's economic activity down 2.1% in March vs year
earlier
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Brazil oil-export tax a 'concerning' development' - Shell
chief
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Peru's inflation hits 0.56% in April
By Bansari Mayur Kamdar May 2 (Reuters) - The Brazilian real fell on Tuesday after data showed manufacturing activity in Latin America's largest economy contracted in April, while Chile's peso slipped after economic activity in March fell more than expected. The real slid 1.0% against the dollar by 10:55 am ET. The S&P Global's Brazilian manufacturing Purchasing Managers' Index (PMI) fell to 44.3 in April from 47.0 in March, remaining below the 50.0 line that separates growth from contraction.
The head of oil major Shell Plc's Brazilian operations on Monday said a temporary four-month oil-export tax established in March was a concerning development that could hurt the country's investment attractiveness.
Economists expect Brazil's gross domestic product (GDP) to grow 1% in 2023, the median forecast of the central bank's weekly survey of private economists showed. Brazil's stocks shed 2.3%, pulling Latin American equities sharply lower, led by commodity-linked stocks as crude and metal prices came under pressure. "We remain more optimistic tactically on Brazil relative to Mexico given inexpensive equity valuations and a recent divergence between ‘domestic’ facing equities in Brazil and the local rates market," said economists at Goldman Sachs in a note. The Mexican peso fell 0.5% and the Colombian peso inched 0.3% down with weak crude prices hurting the oil exporters.
Oil prices dropped after manufacturing activity in China, the world's top crude importer, fell unexpectedly in April, with markets also nervous ahead rate decision by the U.S. Federal Reserve and European Central Bank (ECB) this week. Mexican stocks inched 0.5% down. Cement maker Cemex , however, gained 8.6% on posting a 14% rise in first quarter net profit from the year earlier period. S&P Global Mexico Manufacturing Purchasing Managers' Index was a seasonally-adjusted 51.0 in April, unchanged from March. Chile's peso slipped 0.2% after its IMACEC economic activity index, a close proxy of gross domestic product (GDP), dropped 2.1% in March from the same month last year. The Peruvian sol slipped 0.1% against the dollar. Credit rating agency Fitch Ratings maintained the Peru's sovereign debt note at "BBB" on Friday, with a negative outlook, amid deteriorating economic and governance conditions in the Andean nation. Peruvian consumer price inflation was at 0.56% in April, according to data published on Monday by national statistics agency INEI. Argentina on Monday put in place new provisions that restrict bond settlement operations in foreign currency with the purpose of decompressing pressures on alternative exchange markets, said the National Securities Commission (CNV). Elsewhere in emerging markets, supporters of a right-wing candidate who came third in Paraguay's presidential election clashed with police outside the electoral court on Monday, amid complaints of fraud in a vote that the ruling Colorado Party won comfortably.
Key Latin American stock indexes and currencies:
Stock indexes Latest Daily % change MSCI Emerging Markets 973.69 -0.31 MSCI LatAm 2180.53 -2.56 Brazil Bovespa 101932.12 -2.39 Mexico IPC 54852.15 -0.49 Chile IPSA 5349.61 -1.2 Argentina MerVal 291427.89 -2.192 Colombia COLCAP 1173.46 -2.11
Currencies Latest Daily % change Brazil real 5.0403 -1.04 Mexico peso 18.0200 -0.49 Chile peso 808.5 -0.41 Colombia peso 4718 -0.23 Peru sol 3.7098 -0.15 Argentina peso (interbank) 224.6000 -0.86 Argentina peso (parallel) 474 -1.05 (Reporting by Bansari Mayur Kamdar in Bengaluru Editing by Christina Fincher)
@BansariKamdar;))