EMERGING MARKETS-Latam currencies slip on lower oil prices ahead of U.S. jobs data
(Updates prices) 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 0.53 percent on Thursday, tracking oil prices lower 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 a modest 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. The real ended the day down 0.87 percent. Brazil's benchmark Bovespa index rose 0.22 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 2130 : Stock indexes Latest Daily YTD pct pct change change MSCI Emerging Markets 825.46 0.77 3.15 MSCI LatAm 2,194.00 -0.18 20.12 Brazil Bovespa 52,021.20 0.22 20.00 Mexico IPC 45,394.37 0.2 5.62 Chile IPSA 3,998.94 0.1 8.66 Chile IGPA 19,764.07 0.13 8.88 Argentina MerVal 14,743.39 0.35 26.28 Colombia IGBC 9,663.54 -0.62 13.06 Venezuela IBC 11,711.05 -0.63 -19.72 Currencies Latest Daily YTD pct pct change change Brazil real 3.3659 -0.87 17.72 Mexico peso 18.84 -0.53 -8.49 Chile peso 665.8 -0.50 6.59 Colombia peso 2,986.5 0.38 6.12 Peru sol 3.282 -0.03 4.02 Argentina peso (interbank) 14.7000 0.00 -11.68 Argentina peso (parallel) 14.85 0.40 -3.91 (Reporting by Bruno Federowski; Additional reporting by Paula Laier; Editing by Will Dunham and Sandra Maler)
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