EMERGING MARKETS-Brazil real seesaws ahead of Carnaval; U.S. job data weighs

viernes 5 de febrero de 2016 11:19 GYT
 

By Bruno Federowski
    SAO PAULO, Feb 5 (Reuters) - The Brazilian real seesawed on
Friday as traders closed positions ahead of the local Carnaval
holiday and digested a batch of mixed U.S. job data.
    The real turned positive for the year against the U.S.
dollar this week, boosted by a recovery in global sentiment and
bets that the U.S. Federal Reserve could avoid raising rates
until 2017.
    Traders also cited talk of action by Brazilian public banks
to stymie currency weakness.
    Investors were reluctant to stick to bets that this rebound
would last going into the extended weekend. Brazilian markets
will be closed Monday and Tuesday and will reopen on Wednesday.
    "You don't want to be exposed for four whole days," said
José Carlos Amado, a trader at Spinelli brokerage in São Paulo.
    The country's Bovespa stock index rose for a third day,
supported by shares of Itau Unibanco Holding SA, BRF
SA and Ambev SA.
    Other Latin American currencies weakened after data showed a
lower U.S. unemployment rate in January and higher wages, though
job creation slowed. Some traders said the figures put a 2016
interest rates increase back on the table, which could draw
funds away from high-yielding emerging market assets.
 
    "Although there is more talk of recession in the U.S., this
is still not the kind of data one associated with an economic
contraction," wrote BBH analysts in a client note.
    "While we have doubted the Fed's four-hike call, we think
the market is similarly extreme in not fully pricing in a single
hike this year."
    
    Latin American stock indexes and currencies at 1455 GMT:
 Stock indexes                                daily %    YTD %
                                               change   change
                                  Latest               
 MSCI Emerging Markets               740.44      0.12    -6.87
 MSCI LatAm                         1769.92      -0.8     -2.5
 Brazil Bovespa                    40994.78      0.42    -5.43
 Mexico IPC                        43513.32     -0.55     1.25
 Chile IPSA                         3662.37     -0.11    -0.48
 Chile IGPA                        18011.61     -0.09    -0.77
 Argentina MerVal                  11504.97      0.72    -1.46
 Colombia IGBC                      8637.44     -0.37     1.05
 Venezuela IBC                     14379.55     -1.98    -1.43
                                                              
 Currencies                                   daily %    YTD %
                                               change   change
                                     Latest            
 Brazil real                         3.8953     -0.06     1.33
 Mexico peso                        18.3820     -0.58    -6.27
                                                       
 Chile peso                             701     -0.54     1.24
 Colombia peso                         3332     -0.54    -4.88
 Peru sol                            3.4821     -0.17    -1.96
 Argentina peso (interbank)         14.2300      0.07    -8.77
                                                       
 Argentina peso (parallel)             14.2      0.42     0.49
                                                       
 
    

 (Reporting by Bruno Federowski; Editing by Bernadette Baum)