December 6, 2019 / 7:54 PM / a month ago

EMERGING MARKETS-Brazilian real rises as U.S. jobs data fuels LatAm FX rally

 (Updates prices)
    * Brazil's real snaps four straight weeks of losses
    * Argentine president-elect Fernandez's cabinet in focus
    * Brazil stocks propped up by resources play

    By Susan Mathew and Ambar Warrick
    Dec 6 (Reuters) - Most Latin American currencies firmed on
Friday, with Brazil's real rising to four-week highs, as robust
jobs numbers from the United States combined with optimism over
Sino-U.S. trade talks to lift sentiment.
     U.S. job growth increased by the most in 10 months in
November, data showed, confirming that the economy remained on a
moderate expansion path. This quelled some fears of a
deceleration in growth in the world's largest economy. 
    "(The U.S. data) should lend support to the likely FOMC
message next week that both the economy and monetary policy
remain in a "good place". We expect the Fed to keep rates on
hold at Wednesday's meeting," strategists at TD Securities said.
    Cuts to the U.S. benchmark borrowing rate have lent support
to emerging market currencies this year. 
    Against a strong dollar, Chile's peso rallied 0.7%
and logged its best week in more than eight years as the
country's central bank tried to prop up the currency which fell
to a record low last week after anti-government riots.
    Brazil's real firmed 1% to its highest level in
almost one month, as consumer price inflation bounced back to
seven-month highs in November. The currency added about 2% this
week to snap four straight weeks of losses.
    The Argentine peso was largely flat ahead of
president-elect Alberto Fernandez announcing his cabinet, with
the focus on who will be named treasury minister.
    With fewer than 10 days left before additional U.S. tariffs
are imposed on Chinese goods, markets are holding out for a
phase one trade deal.
    U.S. President Donald Trump said talks were "moving right
along," and in a positive sign Beijing said it will waive import
tariffs for some soybeans and pork shipments from the United
States.
    In line with a rise on Wall Street, Brazilian stocks
touched a fresh high for a third day. The Bovespa extended gains
into a fifth straight session on sustained strength in energy
and mining stocks, tracking commodity prices.
           
    Key Latin American stock indexes and currencies at 1930 GMT:
    Stock indexes             Latest    Daily %
                                         change
 MSCI Emerging Markets         1050.27      0.71
                                        
 MSCI LatAm                    2751.50      1.52
                                        
 Brazil Bovespa              111219.99      0.54
                                        
 Mexico IPC                   42021.19     -0.46
                                        
 Chile IPSA                    4723.26     -0.25
                                        
 Argentina MerVal             36670.63     3.464
                                        
 Colombia COLCAP               1612.57     -0.13
                                        
                                                
       Currencies             Latest    Daily %
                                         change
 Brazil real                    4.1434      1.07
                                        
 Mexico peso                   19.2928      0.39
                                        
 Chile peso                     777.05      0.48
                                        
 Colombia peso                  3420.5      1.21
 Peru sol                        3.377      0.06
                                        
 Argentina peso                59.9400      0.08
 (interbank)                            
                                        
 

 (Reporting by Ambar Warrick and Susan Mathew in Bengaluru;
Editing by Alexander Smith)
  
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