EMERGING MARKETS — Latam markets set for weekly loss as investors weigh rates, Brazil election outlook

1% Datafolha poll shows Lula leading Bolsonaro 46% to 44% in runoff scenario Sheinbaum says Mexico and US reached some agreements after call with Trump Mexican peso headed for its worst week since March By Avinash P and Ragini Mathur Sept 18 (Reuters) — Latin American currencies and stocks were mixed on Friday, but remained on track for weekly losses following major central bank rate decisions, while Brazil's tightening presidential race and Mexico-US trade talks kept investors on edge.

Brazilian President Luiz Inacio Lula da Silva held a narrow numerical lead over Senator Flavio Bolsonaro in a potential runoff in the October presidential election, according to a Datafolha poll published on Thursday. In the runoff scenario, Lula had 46% support and Flavio Bolsonaro had 44%, unchanged from the previous poll. Markets have closely monitored shifts in electoral surveys and a Lula victory could add to worries over the counrty's worsening fiscal situation under the current administration. 4% and was on track for its first weekly loss in five as uncertainty over the presidential elections weighed.

1442 a dollar. "Greater clarity on the country’s medium-term economic outlook and policy framework would lift sentiment," UBS analysts said in a note about Brazil. 6% and was also on track for a weekly loss. The US dollar remained firm at the multi-week highs it had reached after a widely expected rate hike by the Federal Reserve on Wednesday.

While the move reinforced the US central bank's resolve to curb inflation, the prospect of higher global rates for longer could weigh on emerging-market assets. Meanwhile, the Brazilian central bank cut rates by 25 basis points this week amid firmer signs of an economic slowdown, while keeping its options open ahead of next month's presidential election. "Whether Copom delivers another reduction at the meeting in November in part hinges on the outcome of next month’s election," said William Jackson, chief emerging markets economist at Capital Economics. 1%, but was headed for a weekly loss.

In Mexico, President Claudia Sheinbaum said she had spoken with US President Donald Trump and they had reached some agreements. A deal with the US had stalled earlier in the year and left investors fretting about the outlook for Mexican exports. 50% in August, extending a pause after a two-year easing cycle. 229 per dollar, on track for its worst week since March.

Stock markets in Chile were closed for a holiday. Emerging market funds posted net inflows on aggregate, as strong demand for Asian and China tech assets masked widespread outflows across global and hard-currency bond funds, Barclays analysts said. 7% and remained in focus after concerns over redemption problems in a handful of funds stoked a sell-off earlier this week. The Turkish Central Bank sold some $5 billion of foreign exchange on Wednesday as fund-driven selling pressure hit stocks, while Bloomberg News reported that the country's wealth fund had stepped in to buy blue-chip stocks to stem the market rout.

Index provider FTSE Russell said it was monitoring developments after Turkey's Capital Markets Board ordered the liquidation of several investment funds. 63 Brazil Bovespa 185344. com;)