July 6, 2012 / 10:31 PM / 5 years ago

EMERGING MARKETS-Latam stocks slip on US jobs report

* U.S. employers added fewer jobs than expected in June
    * Brazil stock market closed on Monday
    * Brazil Bovespa falls 1.75 pct, Mexico IPC down 0.52 pct

    SAO PAULO, July 6 (Reuters) - Latin American stocks fell on
Friday after data showed employers in the United States added
fewer jobs than expected in June, raising concerns a recovery in
the world's largest economy is losing steam. 
    The MSCI Latin American stock index fell for
a third consecutive day, losing 1.36 percent to 3,542.51, but it
ended the week with gains around 1 percent. 
    With the recent bout of weak economic data from the United
States, Europe and China, investors are anxiously eyeing the
beginning of earnings season next week and a meeting of European
finance ministers to gauge the global outlook.
    Worries over a slowdown in global growth has led investors
away from riskier Latin American assets in favor of safe-haven
investments such as the U.S. dollar.
    "Analysts expect weak numbers this quarter, with companies
hit hard by the crisis in Europe and a clear slowdown in
consumption in the United States," said Alejandro Pavon of 
InterBolsa Securities in Miami. 
    The U.S. Labor Department said non-farm payrolls expanded by
just 80,000 jobs in June, falling short of forecasts. That added
to worries Europe's debt crisis is dragging on growth in the
United States and will have a knock on effect on the global
    Brazil's bovespa index lost 1.75 percent to
55,394.05, but ended the week nearly 2 percent up after gaining
about 7 percent in the previous five sessions.    
    Profit taking in commodities shares - prompted by concerns
about sagging global demand - drove losses in the Bovespa on
Friday, with state-controlled oil producer Petrobras 
down 2.04 percent and iron-ore giant Vale losing 1.53
    "Next week will continue to be volatile, with the index
floating between 52-53,000 and 57-58,000 points until we have a
better perspective of what is going to happen in Europe," said
Joao Pedro Brugger, an analyst at Leme Investimentos in
Florianopolis, Brazil. 
    Investors are eyeing a meeting next week of euro zone
finance ministers where they are expected to sort out plans to
create a single banking supervisor based around the European
Central Bank and other measures to stem the region's debt
    But European officials are already trying to tap down hopes,
warning against expecting any swift action.    
    Brazil's stock market will be closed on Monday for a local
holiday, adding to risk aversion in today's session, analysts
    Mexico's IPC index slipped for a third day, falling
0.52 percent to 39,831.65 and posting a 0.9 percent weekly fall.
    Mexican stocks are susceptible to economic weakness in the
United States, the destination of over 80 percent of Mexico's
    Mining firm Grupo Mexico fell 2.13 percent,
contributing most to the index's fall.
    Shares of telecommunications firm America Movil,
controlled by billionaire Carlos Slim, declined 0.35 percent. A
court on Thursday denied Slim's bid to enter into the country's
television market. 
    Chile's IPSA index edged down 0.29 percent to
4,413.41, but was still set to eke out a slight gain for the
    Industrial conglomerate Copec fell 1.11 percent. 
   Latin America's key stock indexes at 21:51 GMT: 
 Stock indexes                    daily %  year-to
                         Latest    change   date %
 MSCI LatAm             3,542.51    -1.36    -1.66
 Brazil Bovespa        55,394.05    -1.75    -2.40
 Mexico IPC            39,831.65    -0.52     7.43
 Chile IPSA             4,413.41    -0.29     5.65
 Chile IGPA            21,127.37    -0.25     4.96
 Argentina MerVal       2,383.69     0.11    -3.21
 Colombia IGBC         13,711.64    -0.81     8.26
 Peru IGRA             20,602.68    -0.29     5.80
 Venezuela IBC        248,429.38        0   112.27

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