MERCADOS EMERGENTES – Brasil recua de alta em quatro meses, câmbio da América Latina busca ganhos semanais


    * Brazil's real set for weekly gains of more than 3% 
    * Colombian peso outperforms Latam peers for the week 
    * Mexico awaits central bank board announcement on Monday

    By Shashank Nayar
    Dec 4 (Reuters) - Brazil's real fell on Friday after hitting
a four-month high but was set to gain for the third straight
week after signs of improving economic growth, while most other
currencies in Latin America were set to rise for the week. 
    The real cooled off from Thursday's rally to drop
0.8% after data showed the country's economy grew at a record
pace in the third quarter.
    A Reuters poll showed Brazil's currency is set to keep its
recent gains into the first-quarter of 2021 but the positive
trend could unravel as the year wears on due to increasing fears
about the country's public finances.
    Improving economic trends and optimism over the eventual
roll-out of a coronavirus vaccine have driven gains in Latin
American assets recently.
    The Mexican and Columbian pesos were the top
gainers in early trading as the oil exporting majors benefit
from rising oil prices. Colombia's peso outperformed major Latin
American currencies for the week with gains of nearly 4%.
    Mexico's President Andres Manuel Lopez Obrador delayed the
announcement of a second female Mexican deputy central bank
governor to Monday. The announcement was set to arrive later in
the day as the country pushes for an effort to diversify the
Bank of Mexico's governing body.
    The new member will replace Javier Guzman, known as one of
Banxico's more hawkish board members who applied a more cautious
approach to cutting the bank's main lending rate.
    "Against this background the markets are likely to take a
closer look at who is going to be asked to replace who and what
their views are," analysts at Commerzbank wrote in a note.
    "It certainly cannot be excluded that the election of the
successor will be reflected in the MXN exchange rates."
    The Chilean Peso rose 0.5% to its one-year high
supported by strong gains in copper prices. The peso was set for
weekly gains of 3%. 
    Copper prices pushed to the strongest levels since March
2013 on Friday as U.S. politicians moved closer to agree on
long-awaited stimulus spending that would boost the economy.

    A gauge of Latin American stocks gained 0.8%
during the day, tracking its fifth straight weekly rise. 

    Key Latin American stock indexes and currencies at 1519 GMT:
    
           Stock indexes                    Latest   Daily %
                                                     change
 MSCI Emerging Markets                      1251.09     0.94
 MSCI LatAm                                 2367.35      0.5
 Brazil Bovespa                           113398.26     0.99
 Mexico IPC                                44464.05     1.21
 Chile IPSA                                 4184.86    -0.09
 Argentina MerVal                          55531.61    0.688
 Colombia COLCAP                            1313.96     1.22
                                                            
               Currencies                   Latest   Daily %
                                                     change
 Brazil real                                 5.1785    -0.81
 Mexico peso                                19.8092     0.35
 Chile peso                                     748     0.20
 Colombia peso                               3469.7    -0.09
 Peru sol                                    3.5927    -0.06
 Argentina peso (interbank)                 81.6500    -0.10
                                                     
 Argentina peso (parallel)                      147     2.72
                                                     
 
 (Reporting by Shashank Nayar in Bengaluru
Editing by Alistair Bell)
  

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