EMERGING MARKETS-Latam currencies slip on lower oil prices ahead of U.S. jobs data

jueves 7 de julio de 2016 12:49 GYT

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
 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)