EMERGING MARKETS-Latam stocks, currency jump after weak U.S. job data
By Bruno Federowski SAO PAULO, June 3 (Reuters) - Latin American stocks and currencies jumped on Thursday after U.S. job creation slowed sharply, allaying fears of a Federal Reserve rate hike as soon as this month. The U.S. economy created only 38,000 jobs in May, the fewest in more than five years, suggesting a deterioration in the labor market. That could derail the Fed's plans resume tightening monetary policy soon, sustaining the appeal of high-yielding emerging market assets. Comments by Fed officials including Chair Janet Yellen had led some traders to bet the U.S. central bank could take action at its June 14-15 policy meeting. "Everything suggested the Fed could increase its benchmark rate very soon, but these figures clash with that trajectory," said INVX Global Asset Management chief economist Eduardo Velho. Yellen will have a last chance to communicate with markets before the meeting in a speech on economic outlook and monetary policy on Monday in Philadelphia. The Fed could also delay the increase because of mounting concern over the economic impact of Britain's upcoming vote on whether to leave the European Union. The Colombian peso shot up 2 percent to its strongest against the U.S. dollar in two weeks. The currency sharply outperformed its peers this week after the central bank suspended its intervention policy aimed at cushioning the peso's decline. The Brazilian real strengthened past 3.55 per U.S. dollar. The country's benchmark Bovespa stock index rose 0.8 percent as shares of miner Vale SA followed iron ore prices higher. Local media reported on Thursday Brazil's interim President Michel Temer plans to replace the head of Vale because he is too allied with suspended President Dilma Rousseff. Key Latin American stock indexes and currencies at 1435 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 818.29 1.11 1.91 MSCI LatAm 2093.69 1.5 12.73 Brazil Bovespa 50296.33 0.82 16.02 Mexico IPC 45662.20 0.34 6.25 Chile IPSA 3929.58 0.28 6.78 Chile IGPA 19369.61 0.23 6.71 Argentina MerVal 12897.59 1.41 10.47 Colombia IGBC 9665.02 -0.1 13.08 Venezuela IBC 15614.09 0.6 7.03 Currencies daily % YTD % change change Latest Brazil real 3.5410 1.27 11.47 Mexico peso 18.6120 0.37 -7.43 Chile peso 683.4 0.89 3.85 Colombia peso 3021.5 2.01 4.89 Peru sol 3.3419 0.87 2.16 Argentina peso (interbank) 13.8700 0.22 -6.40 Argentina peso (parallel) 14.31 0.84 -0.28 (Reporting by Bruno Federowski; Additional reporting by Paula Arend Laier; Editing by Meredith Mazzilli)
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