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EMERGING MARKETS-LatAm currencies weaken on strong U.S. jobs data
March 8, 2017 / 4:35 PM / 6 months ago

EMERGING MARKETS-LatAm currencies weaken on strong U.S. jobs data

    By Bruno Federowski
    SAO PAULO, March 8 (Reuters) - Latin American currencies
weakened on Wednesday after data showed hiring by U.S. private
employers surged, solidifying bets on a Federal Reserve interest
rate increase next week. 
    The ADP National Employment Report showed U.S. private
payrolls added 298,000 jobs in February, well above economists'
expectations of a 190,000 gain.
    Bets that the Fed could hike rates soon have been steadily
growing for weeks after several policymakers from the U.S.
central bank publicly stressed that possibility.
    Higher rates in the United States could drain capital away
from emerging markets, which often lure foreign investors with
relatively high yields.
    The Mexican peso weakened 0.6 percent, while the
Brazilian real slipped 1 percent.
    Brazil's benchmark Bovespa stock index fell 1.2
percent, weighed down by preferred shares of steelmaker Gerdau
SA.
    Common shares, which are not part of the
benchmark index, rose 17 percent, reducing the spread between
the stocks to the narrowest in more than a year.
    Holding company Metalúrgica Gerdau SA said on
Wednesday it will request permission from regulators to swap
each common share they hold in Gerdau for one preferred share in
the steelmaker.
    
    Key Latin American stock indexes and currencies at 1625 GMT:
 Stock indexes                            daily %    YTD %
                                           change   change
                               Latest              
 MSCI Emerging Markets            933.55    -0.32     8.61
                                                   
 MSCI LatAm                      2561.18    -1.38    10.95
                                                   
 Brazil Bovespa                 64968.45    -1.18     7.87
 Mexico IPC                     47537.08     0.25     4.15
 Chile IPSA                      4485.93     0.21     8.06
                                                   
 Chile IGPA                     22523.45     0.27     8.63
 Argentina MerVal               19257.87     0.05    13.83
                                                   
 Colombia IGBC                   9896.42    -0.32    -2.29
                                                   
 Venezuela IBC                  37553.27    -1.54    18.45
                                                          
 Currencies                               daily %    YTD %
                                           change   change
                                  Latest           
 Brazil real                      3.1501    -0.99     3.15
                                                   
 Mexico peso                     19.6020    -0.57     5.83
                                                   
 Chile peso                        662.7    -0.56     1.21
                                                   
 Colombia peso                      2991    -1.33     0.35
 Peru sol                          3.294    -0.46     3.64
                                                   
 Argentina peso (interbank)      15.5900     0.06     1.83
                                                   
 Argentina peso (parallel)         16.07     0.12     4.67
                                                   
 
 (Reporting by Bruno Federowski; Editing by Meredith Mazzilli)
  

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