EMERGING MARKETS-Thin trading in LatAm markets after U.S. jobs report
BRASILIA, May 6 (Reuters) - Latin American currencies and stocks traded thinly on Friday after weaker-than-expected jobs numbers in the U.S. reduced expectations of interest rate hikes by the Federal Reserve this year. The broader MSCI Latin American stock index, the Brazil's Bovespa stock index and the Mexican stock index all fell slightly, with no clear trend. Most currencies were up against the U.S., with the exception of the Colombian peso. Brazil's central bank stayed clear of intervening in foreign exchange markets for a third consecutive day as the real was little changed. "The market is moving laterally, sticking to this range between 3.50 and 3.55 reais per dollar as it waits for a new economic team to take office next week," said Ricardo Silva, head of currency trading at Brazilian brokerage Correparti, referring to the likely replacement of President Dilma Rousseff by Vice-President Michel Temer next week. Stocks dipped worldwide after data showed U.S. non-farm payrolls increased by 160,000 jobs last month, far below the 202,000 economists polled by Reuters had forecast on average. The number cast doubts on whether the Federal Reserve will raise interest rates before the end of the year. Economic data also showed Brazil's inflation slowing less than expected last month. Yields on Brazilian interest rate futures <0#2DIJ:> rose as traders saw a smaller likelihood of interest rate cuts by the central bank at its next meeting in June. In equities markets, shares of Mexican home builder Desarrolladora Homex SAB de CV fell more than 5 percent after the U.S. Securities and Exchange Commission notified it about a planned enforcement action related to fraudulent real estate sales. Key Latin American stock indexes and currencies at 1553 GMT: Stock Latest daily % YTD % indexes change change MSCI Emerging Markets 804.03 -0.67 1.93 MSCI LatAm 2158.70 -0.13 18.13 Brazil Bovespa 51553.74 -0.23 18.92 Mexico IPC 45065.64 -0.18 4.86 Chile IPSA 4001.49 -0.32 8.73 Chile IGPA 19681.58 -0.27 8.43 Argentina MerVal 13476.38 0.96 15.43 Colombia IGBC 9600.49 0.19 12.32 Venezuela IBC 15382.15 0.09 5.44 Currencies Latest daily % YTD % change change Brazil real 3.5270 0.35 11.91 Mexico peso 17.9060 -0.08 -3.78 Chile peso 664 0.33 6.88 Colombia peso 2964.69 -0.49 6.90 Peru sol 3.3109 0.24 3.11 Argentina peso (interbank) 14.2350 0.07 -8.80 Argentina peso (parallel) 14.49 0.62 -1.52 (Reporting by Flavia Bohone; Writing by Silvio Cascione; Editing by Chris Reese)
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