EMERGING MARKETS-Latam currencies slip on lower oil prices ahead of U.S. jobs data
By Bruno Federowski SAO PAULO, July 7 (Reuters) - Most Latin American currencies slipped on Thursday as a drop in oil prices led investors toward safer assets ahead of key U.S. jobs data the next day. Crude prices fell 3 percent after figures showing a weekly drop in U.S. stocks disappointed some investors who expected larger declines. That was enough to cap a tentative rebound in demand for emerging market assets following two weeks of volatility stemming from Britain's decision to leave the European Union. Mexico's peso fell by as much as 1 percent on Thursday as traders averted risky bets before the release of the U.S. nonfarm payrolls report on Friday. Analysts said the data could put a U.S. interest rate increase later this year back on the table after May's weak job gains led many to scrap those bets. Trading was muted in Brazil as investors stayed on the sidelines before the announcement of the government's fiscal target for next year later on Thursday. The real had weakened for a fourth straight trading day on Wednesday on fears interim President Michel Temer could set an unambitious goal. But a government source told Reuters on Thursday the government is discussing setting a primary deficit target of between 140 billion and 150 billion reais ($45 billion), smaller than this year's estimated 170.5 billion reais deficit. Brazil's benchmark Bovespa index rose about 1 percent, with shares of state-controlled oil company Petróleo Brasileiro SA advancing despite lower crude prices. Morgan Stanley raised its recommendation for the stock to "overweight" from "equal-weight" earlier on Thursday. Key Latin American stock indexes and currencies at 1640 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 826.54 0.9 3.15 MSCI LatAm 2210.05 0.55 20.12 Brazil Bovespa 52404.07 0.97 20.89 Mexico IPC 45346.98 0.09 5.51 Chile IPSA 4005.60 0.27 8.84 Chile IGPA 19794.55 0.29 9.05 Argentina MerVal 14787.22 0.65 26.66 Colombia IGBC 9681.95 -0.43 13.27 Venezuela IBC 11868.66 0.71 -18.64 Currencies daily % YTD % change change Latest Brazil real 3.3410 -0.16 18.14 Mexico peso 18.8510 -0.59 -8.60 Chile peso 665.9 -0.51 6.58 Colombia peso 2989.85 0.27 6.00 Peru sol 3.282 -0.03 4.02 Argentina peso (interbank) 14.6400 0.41 -11.32 Argentina peso (parallel) 14.76 1.02 -3.32 (Reporting by Bruno Federowski; Additional reporting by Paula Laier; Editing by Will Dunham)
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