EMERGING MARKETS-Mexico peso, stock index down ahead of U.S. payrolls report
(Updates lead, adds new table) By Bruno Federowski SAO PAULO, Oct 6 (Reuters) - Mexico's currency and stocks fell on Thursday as traders bet that a closely watched U.S. employment report due on Friday will strengthen the case for an interest rate increase this year. Strong U.S. economic data has boosted expectations that the U.S. Federal Reserve will soon act on rates, denting demand for higher-yielding emerging market currencies. A report showed on Thursday that the number of Americans filing new claims for unemployment benefits unexpectedly fell last week to near a 43-year low. That reading came a day before the government's September employment figures, a strong indicator of U.S. labor market strength. Economists polled by Reuters estimate a 175,000 increase in non-farm payrolls. Mexico's IPC stock index fell 0.41 percent to 47,944.77 points and its peso weakened 0.1 percent to close at 19.235 per dollar. Brazil's real made small gains due to an upcoming vote on a constitutional amendment that would cap public spending in line with inflation for 20 years. The real closed at 3.22 per greenback. Analysts with political risk consultancy Eurasia Group said they expect Congress to swiftly approve the amendment, which traders see as crucial to regaining investor trust in Brazil. The proposal "contains only modest concessions to lawmakers focused on preserving social spending," they wrote in a report. Key Latin American stock indexes and currencies at 2100 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging 917.04 0.19 15.48 Markets MSCI LatAm 2443.86 0.24 33.56 Brazil Bovespa 60644.24 0.65 39.89 Mexico IPC 47944.77 -0.41 11.56 Chile IPSA 4077.28 -0.19 10.79 Chile IGPA 20325.56 -0.14 11.98 Argentina MerVal 17143.32 0.42 46.84 Colombia IGBC 9921.52 0.2 16.08 Venezuela IBC 13335.23 -1.46 -8.59 Currencies daily % YTD % change change Latest Brazil real 3.2268 -0.16 22.32 Mexico peso 19.2350 0.00 -10.42 Chile peso 666.7 -0.28 6.45 Colombia peso 2905.4 0.00 9.08 Peru sol 3.408 -0.21 0.18 Argentina peso 15.2050 -0.07 -14.62 (interbank) Argentina peso 15.52 0.52 -8.05 (parallel) (Reporting by Bruno Federowski; Editing by Steve Orlofsky and Will Dunham)
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