April 27, 2018 / 2:41 PM / 7 months ago

EMERGING MARKETS-Mexico, Brazil currencies up on mixed U.S. data

    By Bruno Federowski
    BRASILIA, April 27 (Reuters) - The Brazilian real and the
Mexican peso inched up on Friday after mixed U.S. economic
figures drove investors to pare back bets on a fast pace of U.S.
interest rate hikes in coming months.
    The U.S. economy slowed in the first quarter as growth in
consumer spending braked sharply, though labor costs increased
more than expected in the period.
    "Consumer spending was weak, despite a strong overall
reading. We'll need more clues to justify the recent growth of
rate hike bets," said Mauriciano Cavalcante, the head of
currency trading at Ourominas.
    Emerging market currencies have slumped in recent weeks due
to expectations of accelerating inflation and a widening fiscal
deficit that could drive the U.S. Federal Reserve to accelerate
policy tightening. That would likely dampen demand for
high-yielding assets.
    The Mexican peso firmed 0.4 percent, while the
Brazilian real edged up 0.2 percent.
    The benchmark Bovespa stock index was up 0.3 percent
following a heavy batch of corporate updates.
    Shares of GPA SA jumped 4.3 percent after the
food retailer beat first-quarter profit estimates on Thursday
after a strong performance by its wholesale unit.
    Planemaker Embraer SA, however, fell 2 percent
after it reported a first-quarter loss.
    
    Key Latin American stock indexes and currencies at 1425 GMT:
 Stock indexes                           daily %   YTD %
                                          change  change
                              Latest              
 MSCI Emerging Markets         1156.61      1.07   -1.22
                                                  
 MSCI LatAm                    3012.01      0.86     5.6
                                                  
 Brazil Bovespa               86627.01      0.28   13.38
                                                  
 Mexico IPC                   48340.70      0.09   -2.05
                                                  
 Chile IPSA                    5684.53      0.09    2.16
                                                  
 Chile IGPA                   28557.29      0.08    2.06
                                                  
 Argentina MerVal             29514.07      0.09   -1.83
                                                  
 Colombia IGBC                12348.50      0.63    8.60
                                                  
                                                        
 Currencies                              daily %   YTD %
                                          change  change
                                                  
                                Latest            
 Brazil real                    3.4689      0.20   -4.49
                                                  
 Mexico peso                   18.6990      0.41    5.35
                                                  
 Chile peso                     604.85     -0.43    1.62
                                                  
 Colombia peso                  2799.5      0.59    6.52
 Peru sol                        3.238     -0.06   -0.03
                                                  
 Argentina peso (interbank)    20.8500     -1.44  -10.79
                                                  
 Argentina peso (parallel)       20.87     -0.91   -7.86
                                                  
 
 (Reporting by Bruno Federowski; editing by Jonathan Oatis)
  
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