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

jueves 7 de julio de 2016 17:55 GYT
 

(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)