October 4, 2019 / 2:27 PM / 18 days ago

EMERGING MARKETS-Latam currencies eye weekly gains but stocks set to fall

    By Agamoni Ghosh
    Oct 4 (Reuters) - Latin American currencies rose on Friday,
on track to record  their biggest weekly gains in almost a month
as doubts over the health of the U.S. economy kept the dollar on
the back foot, while Brazil stocks eyed their worst weekly
performance since August.  
    Recent sets of disappointing data from major economies
through the week indicated that the manufacturing sector
globally is in a synchronized slowdown, partly caused by the
U.S.-China trade war, making investors weary of riskier bets. 
    That worsened after dire readings of both the manufacturing
and services sector in the world's largest economy raised red
flags about the United States being a silver lining amid a
global downturn, even though labour market numbers were stable. 
  
    Money markets still expect the U.S. Federal Reserve to ease
monetary policy further, although expectations for two rate cuts
by the end of the year somewhat waned after the modest jobs
data. 
    "The odds of a cut may have gone down but they are still
quite high," said Win Thin, global head of emerging market
currency strategy at Brown Brothers Harriman. 
    "We have some more data points to look at next week
including inflation numbers which should give a much clearer
picture on what the Fed is likely to do."       
    Most currencies in the region eyed weekly gains led by
Brazil's real, on course to gain over 2% for the week,
with additional impetus coming from optimism regarding the final
stages of approval for a landmark pension reform bill. 
    MSCI's index of Latin American stocks rose
marginally on those rate cut bets but was set to record a weekly
loss of over 1% with Brazil's Bovespa on track to shed
over 3% for the week.   
    Mexican stocks rose marginally but were set to end
lower for a second straight-week, while Chile's SPIPSA index
 was set to snap a five-week gaining streak. 

  Latin American stock indexes and currencies at 14:14 GMT
 Stock indexes                              daily % change
                           Latest          
 MSCI Emerging Markets             994.94             0.27
                                           
 MSCI LatAm                       2655.27             0.83
                                           
 Brazil Bovespa                 101471.94            -0.04
                                           
 Mexico IPC                      42541.83             0.23
                                           
 Chile IPSA                       5029.90             0.58
                                           
 Argentina MerVal                    0.00                0
                                           
 Colombia IGBC                   12891.52            -0.11
                                           
                                                          
 Currencies                                 daily % change
                                   Latest  
 Brazil real                       4.0666             0.54
                                           
 Mexico peso                      19.5403             0.54
                                           
 Chile peso                         715.7             0.06
                                           
 Colombia peso                    3428.78             0.44
 Peru sol                          3.3708             0.07
                                           
 Argentina peso                   57.7000             0.12
 (interbank)                               
                                           
 

 (Reporting by Agamoni Ghosh
Editing by Chizu Nomiyama)
  
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