July 15, 2016 / 4:41 PM / 2 years ago

EMERGING MARKETS-Latam stocks, currencies seesaw on U.S., China data

By Bruno Federowski
    SAO PAULO, July 15 (Reuters) - Latin American stocks and
currencies seesawed on Friday as traders digested strong China
and U.S. economic data as well as an attack in the south of
France that killed at least 84 people.
    China's economy expanded slightly faster than expected in
the second quarter while retail sales jumped in June, allaying
concerns over global economic weakness. 
    However, some investors bet that could allow the U.S.
Federal Reserve to increase interest rates later this year,
weighing on high-yielding emerging markets.
    Many traders also refrained from buying riskier assets
following Thursday's attack in France, which President François
Hollande called a terrorist act by an enemy determined to strike
all nations that share France's values. 
    Mexico's peso  weakened 0.9 percent, but the
country's benchmark IPC stock index neared fresh record
    The Brazilian real declined 4 percent after
strengthening as much as 0.5 percent earlier in the day. A drop
in blue-chip stocks such as Itaú Unibanco SA and
Ambev SA weighed on the country's Bovespa index
    Shares of education companies Kroton Educacional SA
 and Estácio Participações SA turned
positive early in the afternoon after Brazil's education
minister announced the government will extend and enlarge a
student financing program into 2017.
    Both stocks had ranked among the biggest losers earlier on
Friday after a change in the plan's rules made it the companies'
obligation to pay financial institutions which participate in
    Shares of power utility Cesp SA posted their
biggest jump in almost eight years after the finance secretary
of the state of São Paulo, the company's main shareholder, said
a possible sale to investors is under consideration.
    Key Latin American stock indexes and currencies at 1610 GMT:
 Stock indexes                               daily %    YTD %
                                              change   change
 MSCI Emerging Markets               867.02     0.13     9.04
 MSCI LatAm                         2345.84    -1.19    29.74
 Brazil Bovespa                    55292.91    -0.34    27.55
 Mexico IPC                        46643.34     0.31     8.53
 Chile IPSA                         4083.06      0.2    10.95
 Chile IGPA                        20156.52     0.18    11.05
 Argentina MerVal                  15395.26    -0.48    31.86
 Colombia IGBC                      9898.01    -0.03    15.80
 Venezuela IBC                     12058.54     1.21   -17.34
 Currencies                                  daily %    YTD %
                                              change   change
 Brazil real                         3.2701    -0.37    20.70
 Mexico peso                        18.5180    -0.89    -6.96
 Chile peso                           651.6    -0.12     8.92
 Colombia peso                      2917.47    -0.17     8.63
 Peru sol                             3.277     0.06     4.18
 Argentina peso (interbank)         14.8800    -0.87   -12.75
 Argentina peso (parallel)            15.17    -0.40    -5.93

 (Reporting by Bruno Federowski; Editing by Chizu Nomiyama)
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