EMERGING MARKETS-Latam stocks, currencies seesaw on strong U.S. jobs data
By Bruno Federowski SAO PAULO, Aug 5 (Reuters) - Latin American stocks and currencies seesawed on Friday after stronger-than-expected jobs data clouded the outlook for U.S. monetary policy. U.S. nonfarm payrolls rose by 255,000 jobs in July, handily surpassing expectations of a 180,000 increase in a Reuters poll. The figures led traders to bring forward their bets on a Federal Reserve interest rate hike, which could drain capital away from emerging markets. But U.S. interest rate futures still indicated smaller-than-even odds of an increase this year. Many investors believe the Fed will wait for stronger signs of rising inflation and more information over the economic impact of the so-called "Brexit". "(The report) is not enough to change the view that the earliest possibility of a U.S. rates increase is December," said Pedro Tuesta, an economist with 4Cast in Washington, D.C. Many investors also bought emerging market assets on expectations that the U.S. recovery could spill over into developing economies. Others, however, remained on the sidelines amid a drop in prices of crude, a key Latin American export. Brazil's real currency inched up 0.2 percent after rising to the highest in one year. But the country's benchmark Bovespa stock index fell 0.4 percent, weighed down by shares of state-controlled oil company Petróleo Brasileiro SA. Shares in Ser Educacional SA, which are not part of the index, jumped as much as 5.5 percent after the education company posted strong second-quarter results. Key Latin American stock indexes and currencies at 1550 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 884.02 0.91 10.31 MSCI LatAm 2415.31 0.55 31.27 Brazil Bovespa 57399.79 -0.34 32.41 Mexico IPC 47120.71 0.38 9.64 Chile IPSA 4121.10 0.1 11.98 Chile IGPA 20371.74 0.08 12.23 Argentina MerVal 15527.26 -0.2 32.99 Colombia IGBC 9619.15 -0.13 12.54 Venezuela IBC 12336.35 -1.16 -15.44 Currencies daily % YTD % change change Latest Brazil real 3.1840 0.28 23.96 Mexico peso 18.8700 0.20 -8.69 Chile peso 657.2 -0.18 7.99 Colombia peso 3043.12 1.24 4.15 Peru sol 3.333 -0.03 2.43 Argentina peso (interbank) 14.8500 0.03 -12.58 Argentina peso (parallel) 15.26 0.46 -6.49 (Reporting by Bruno Federowski; Editing by Meredith Mazzilli)
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