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Brazilian assets led Latin American markets lower on Monday as uncertainty over the United States and China reaching a trade deal and disappointing growth data from major economies made investors cautious.

Although Washington and Beijing labelled their two-day talks last week as "productive" and "constructive," a deal appeared elusive after Chinese officials unexpectedly cancelled a visit to US farms on Friday.

Focus now turns to high-level talks planned for October.

MSCI's index for Latin American stocks fell 0.6%, led by Brazil's Bovespa, dragged down mainly by financial companies.

Shares of Embraer fell nearly 2% after a Reuters report said EU antitrust regulators are set to open a full-scale investigation of Boeing's $4.75 billion bid for a controlling stake in Brazilian planemaker.

The real slid 0.6%, on course to end the month lower. Data showed Latin America's largest economy posted a current account deficit of $4.27 billion in August, slightly wider than the $3.96 billion shortfall forecast.

Also pressuring currencies in the region was a firmer dollar, which gained after the euro fell following poor manufacturing activity readings in the euro zone showing contraction at its steepest rate since late 2012 as demand sank.

Copyright Reuters, 2019


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