EMERGING MARKETS-Latam currencies firm on trade hopes, Brazil stocks jump

    By Agamoni Ghosh and Sruthi Shankar
    Dec 11 (Reuters) - Latin American currencies strengthened
against a broadly weaker  U.S. dollar on Tuesday, while Brazil's
main equity index jumped after three days of losses as risk
sentiment improved on news of  continued trade talks between the
United States and China.
    The greenback weakened amid speculation that the U.S.
Federal Reserve would pause its rate increases sooner than
previously thought, helping MSCI's index for Latin American
currencies gain 0.7 percent.
    "Falling oil prices, the U.S. and China hitting a pause on
further trade escalation, and the Fed hinting at a possible
slowing in the pace of rate hikes in 2019 are potentially good
news for emerging markets (excluding oil exporters)," Goldman
Sachs analysts wrote in a client note.
    Beijing and Washington discussed a road map for the next
stage of their trade talks, during a telephone call between Vice
Premier Liu He and U.S. Treasury Secretary Steven Mnuchin and
Trade Representative Robert Lighthizer.
    Brazil's real snapped a five-day losing streak, also
helped by its central bank's move to improve liquidity in the
foreign exchange market by selling repurchase agreements of $1
    The country's benchmark stock index rose over 1.2
percent in a broad-based rally led by shares of financial and
energy companies. 
    State-owned utility giant Centrais Eletricas Brasileiras
 was the top gainer on the index after the company
said an injunction obtained by labor unions to suspend the
effects of a privatization auction of its distribution unit in
Amazonas will not invalidate the result of the bidding.

    Vale, the world's largest iron-ore producer
gained over 2 percent on higher iron ore prices, while Petroleo
Brasileiro S.A. also gained as oil prices edged
    The Mexican peso and the Colombian peso were
up between 0.4 percent and 0.5 percent. Argentina's peso
climbed 0.4 percent higher ahead of the central bank's monetary
policy meeting later in the day.
    Key Latin American stock indexes and currencies at 1337 GMT 
 Stock indexes                               daily %       YTD %
                                              change      change
 MSCI Emerging Markets               967.38     0.48      -16.89
 MSCI LatAm                         2549.12     1.77      -11.43
 Brazil Bovespa                    86956.12     1.21       13.81
 Mexico IPC                               -        -           -
 Chile IPSA                         5056.19     0.42        0.42
 Argentina MerVal                         -        -           -
 Colombia IGBC                            -        -           -
 Currencies                                  daily %       YTD %
                                              change      change
 Brazil real                         3.9020     0.38      -15.09
 Mexico peso                        20.1730     0.63       -2.35
 Chile peso                           676.9     0.15       -9.20
 Colombia peso                       3175.7     0.44       -6.10
 Peru sol                             3.365     0.09       -3.80
 Argentina peso (interbank)         37.5000     0.53      -50.40

 (Reporting by Agamoni Ghosh and Sruthi Shankar in Bengaluru)

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