June 3, 2016 / 2:52 PM / 2 years ago

EMERGING MARKETS-Latam stocks, currency jump after weak U.S. job data

By Bruno Federowski
    SAO PAULO, June 3 (Reuters) - Latin American stocks and
currencies jumped on Thursday after U.S. job creation slowed
sharply, allaying fears of a Federal Reserve rate hike as soon
as this month.
    The U.S. economy created only 38,000 jobs in May, the fewest
in more than five years, suggesting a deterioration in the labor
    That could derail the Fed's plans resume tightening monetary
policy soon, sustaining the appeal of high-yielding emerging
market assets.
    Comments by Fed officials including Chair Janet Yellen had
led some traders to bet the U.S. central bank could take action
at its June 14-15 policy meeting.
    "Everything suggested the Fed could increase its benchmark
rate very soon, but these figures clash with that trajectory,"
said INVX Global Asset Management chief economist Eduardo Velho.
    Yellen will have a last chance to communicate with markets
before the meeting in a speech on economic outlook and monetary
policy on Monday in Philadelphia.
    The Fed could also delay the increase because of mounting
concern over the economic impact of Britain's upcoming vote on
whether to leave the European Union. 
    The Colombian peso shot up 2 percent to its strongest
against the U.S. dollar in two weeks. The currency sharply
outperformed its peers this week after the central bank
suspended its intervention policy aimed at cushioning the peso's
    The Brazilian real strengthened past 3.55 per U.S.
dollar. The country's benchmark Bovespa stock index rose
0.8 percent as shares of miner Vale SA followed iron
ore prices higher.
    Local media reported on Thursday Brazil's interim President
Michel Temer plans to replace the head of Vale because he is too
allied with suspended President Dilma Rousseff. 
    Key Latin American stock indexes and currencies at 1435 GMT:
 Stock indexes                               daily %   YTD %
                                              change  change
 MSCI Emerging Markets               818.29     1.11    1.91
 MSCI LatAm                         2093.69      1.5   12.73
 Brazil Bovespa                    50296.33     0.82   16.02
 Mexico IPC                        45662.20     0.34    6.25
 Chile IPSA                         3929.58     0.28    6.78
 Chile IGPA                        19369.61     0.23    6.71
 Argentina MerVal                  12897.59     1.41   10.47
 Colombia IGBC                      9665.02     -0.1   13.08
 Venezuela IBC                     15614.09      0.6    7.03
 Currencies                                  daily %   YTD %
                                              change  change
 Brazil real                         3.5410     1.27   11.47
 Mexico peso                        18.6120     0.37   -7.43
 Chile peso                           683.4     0.89    3.85
 Colombia peso                       3021.5     2.01    4.89
 Peru sol                            3.3419     0.87    2.16
 Argentina peso (interbank)         13.8700     0.22   -6.40
 Argentina peso (parallel)            14.31     0.84   -0.28

 (Reporting by Bruno Federowski; Additional reporting by Paula
Arend Laier; Editing by Meredith Mazzilli)
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