EMERGING MARKETS-Global trade fears weigh on LatAm stocks

(Updates prices) SAO PAULO, July 19 (Reuters) - World trade tensions pressured Latin America's major indexes on Thursday, falling in line with other global markets, after the European Union said it was preparing possible retaliatory measures if the United States imposes tariffs on EU cars. Mexico's S&P/BMV IPC index fell 0.56 percent while Brazil's Bovespa dropped 1.25 percent. The United States imposed tariffs on EU steel and aluminum in June, and U.S. President Donald Trump has threatened to extend those to EU-built cars and car parts. The EU's trade commissioner on Thursday said the bloc is preparing a list of U.S. imports to hit if Washington imposes the tariffs. Mexico's benchmark index also took a hit from Mexican telecommunications giant America Movil, whose shares dropped 2 percent a day after reporting a 94-percent fall in net profit due to currency-related swings. In Brazil, local political uncertainty has added to a battering the Bovespa ahead of the country's presidential election scheduled for October, which has traders waiting for the broad-based "blocao" political bloc to select its candidate.

The convention season for Brazilian political parties to choose candidates effectively kicks off on Friday. Shares in Gol Linhas Aereas Inteligentes SA shed 2.4 percent after analysts at Deutsche Bank cut their stock price target. Latin American currencies also weakened on Thursday, as U.S. Federal Reserve Chairman Jerome Powell's recent comments on the health of the U.S. economy shored up the dollar. Brazil's currency, the real, was off 0.64 percent while the Mexican peso lost nearly 1 percent. The Chilean peso dropped some 1.7 percent, its biggest intraday loss since November, as prices for key export copper tanked, hitting one-year lows as fund selling accelerated due to worries about demand from the U.S.-China trade dispute.

Key Latin American stock indexes and currencies at 1940 GMT:

Stock indexes Latest Daily YTD pct pct change

change

MSCI Emerging Markets 1,058.56 -0.95 -7.74 MSCI LatAm 2,565.24 -1.42 -7.99 Brazil Bovespa 76,393.85 -1.25 -0.01 Mexico IPC 48,729.38 -0.56 -1.27 Chile IPSA 5,373.86 -0.07 -3.43 Chile IGPA 27,101.09 -0.24 -3.14 Argentina MerVal 26,813.37 -0.85 -10.82 Colombia IGBC 12,217.24 -0.44 7.45 Venezuela IBC 100,926.31 -6.53 7,890.11 Currencies Latest Daily YTD pct pct change

change

Brazil real 3.8646 -0.64 -14.27 Mexico peso 19.0840 -0.96 3.22 Chile peso 663.8 -1.73 -7.40 Colombia peso 2,880.85 -0.61 3.51 Peru sol 3.274 -0.15 -1.13 Argentina peso (interbank) 27.7500 -0.47 -32.97 Argentina peso (parallel) 28.6 0.17 -32.76

(Reporting by Gram Slattery in Sao Paulo and Daina Beth Solomon in Mexico City; Editing by James Dalgleish)