EMERGING MARKETS-Latam FX stuck in tight range, Bovespa pauses after record run

Sruthi Shankar

run@ Nov 5 (Reuters) - Most Latin American currencies were range bound on Tuesday, pressured by a strengthening dollar ahead of U.S. services sector data, but supported by more signs of a progress in U.S.-China trade talks. The Brazilian real added 0.2% to trade at 4 per dollar, while the Mexican and the Colombian pesos were flat after a recent run-up that took the currencies to multi-month highs. The dollar gained against a basket of major currencies, with economists expecting a U.S. services sector survey due later in the day to show business sentiment rebounding in October from a three-year low. With U.S.-China trade hopes and upbeat U.S. jobs data easing fears of a global slowdown, an index of Latin American currencies was holding near three-month highs. The real got an additional boost from expectations of new market-friendly reforms. President Jair Bolsonaro planned to accompany Economy Minister Paulo Guedes on a visit to Congress to propose new measures to tackle a budget deficit. Yet lawmakers were likely to be skeptical of the wide-ranging proposals, which government officials said included reducing tax breaks by 10%, freeing up government funds to pay down public debt, easing budget rules to lower obligatory spending and ending job stability for new civil servants. Sao-Paulo listed shares dipped 0.2% after hitting a record high the previous session, dragged by shares in state oil company Petrobras. Data showed Brazil's oil production in September fell 2.1% from a month earlier to 2.927 million barrels per day. Shares of Itaú Unibanco Holding SA's rose 2.1% to the top of the index as the country's largest private-sector lender posted a 10.9% gain in third-quarter recurring net income. Chile's markets lagged the most in the region as embattled President Sebastian Pinera rejected the notion of resigning. He told the BBC in an interview that he believes he will reach the end of his term in just over two years despite intense anti-government protests that are roiling the country.

Key Latin American stock indexes and currencies at 1426 GMT:

Stock indexes Latest Daily %


MSCI Emerging Markets 1070.53 0.56MSCI LatAm 2815.18 -0.53Brazil Bovespa 108588.44 -0.18Mexico IPC - -Chile IPSA 4761.33 -0.84Argentina MerVal 37493.55 0.577Colombia IGBC - -Currencies Latest Daily %


Brazil real 4.0039 0.18Mexico peso 19.1790 -0.03Chile peso 745.5 -1.03Colombia peso 3315 0.15Peru sol 3.3328 -0.02Argentina peso (interbank) 59.6500 0.09

(Reporting by Sruthi Shankar in Bengaluru; Editing by David Gregorio)