October 7, 2016 / 10:52 PM / in 2 years

EMERGING MARKETS-Latam currencies down on Fed uncertainty

(Updates table, updates Bovespa close)
 (New throughout, updates prices and market activity)
    By Bruno Federowski
    SAO PAULO, Oct 7 (Reuters) - Key Latin American stocks and
currencies fell on Friday after a high-ranking Federal Reserve
official played down a drop in U.S. jobs growth, raising
expectations the Federal Reserve would still raise interest
rates later this year. 
    U.S. job growth unexpectedly slowed in September for the
third straight month, surprising many traders who had bet on a
robust reading. 
    Emerging markets gained after the report as investors pared
back bets on a U.S. rate hike later this year that could drain
capital away from high-yielding assets.
    But most turned lower a few hours later after Fed Vice Chair
Stanley Fischer said the figures were close to an ideal
"Goldilocks" report. 
    The Mexican and Colombian pesos weakened,
also pressured by a drop in crude prices as traders booked
profits from a rally to four-month highs.
    Brazil's benchmark Bovespa stock index seesawed but
rose 0.77 percent to 61,108 points, the highest closing level
since Sept. 3, 2014.
    Concerns over the economic fallout from Britain's decision
to leave the European Union also weighed on appetite for
emerging market assets.
    The pound sterling slumped to a three-decade low in a
morning "flash crash", though it later recovered to trade about
1.5 percent lower. 
    Key Latin American stock indexes at 2230:
 Stock indexes                         daily %      YTD %
                            Latest      change     change
 MSCI Emerging Markets       914.81      -0.24       15.2
 MSCI LatAm                 2454.56       0.44      34.14
 Brazil Bovespa            61108.98       0.77      40.97
 Mexico IPC                47596.60      -0.73      10.75
 Chile IPSA                 4075.68      -0.04      10.75
 Chile IGPA                20317.35      -0.04      11.93
 Argentina MerVal          17136.22      -0.04      46.77
 Colombia IGBC              9964.37       0.43      16.58
 Venezuela IBC             13417.42       0.62      -8.03
 (Reporting by Bruno Federowski; Editing by David Gregorio and
Andrew Hay)
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