(Updated at 1449 GMT)

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Sheinbaum taps Garcia Harfuch as security minister

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Argentina analysts lower inflation forecast for 2024

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Romania cuts interest rate for first time in three years

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MSCI Latam FX index to notch first weekly gain since May

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Latam stocks off 0.4%, FX slips 0.1%

By Johann M Cherian

July 5 (Reuters) - Most Latin American stocks and

currencies slipped on Friday, after strong gains earlier in the

week, as concerns around fiscal stability in the leading

regional economies and the outlook on interest rates dominated

the mood.

MSCI's index tracking currencies in the region

slipped 0.1% against the dollar, but was set for

its first weekly gain since May 13.

Investors reflected on a mixed U.S. jobs report, and held on

to bets that the Federal Reserve might deliver two interest rate

cuts in 2024.

Most central banks in Latin America have paused their

monetary easing cycles, as analysts expect the Fed to defer its

first interest rate cut.

Brazil's real slipped 0.2%, but was on track for a

weekly gain of over 1.5%. The currency made gains in the last

two sessions after President Luiz Inacio Lula da Silva committed

his government to fiscal stability.

The leader's comments on greater fiscal spending and on the

domestic central bank's stance on restrictive monetary policy

had depressed the real towards the end of the second quarter.

"After a sharp sell-off over the past month, we believe the

market is close to hitting bottom," said Elizabeth Johnson,

managing director, Brazil research at TS Lombard.

"Lula's attacks on Banco Central Governor Campos Neto are

likely to cease for now, but market jitters are only likely to

fully dissipate when a new governor is named."

Mexico's peso dipped 0.2%, but was on track to snap a

three-day winning streak. President-elect Claudia Sheinbaum

continued to name cabinet officials ahead of taking office on

Oct 1, with Omar Garcia Harfuch set to be her security minister.

Oil producer Colombia's also slipped 0.2% in light

trading.

Copper exporters Chile and Peru climbed 0.2%

and 0.3%, respectively, as prices of copper hit a three-week

high.

On the equities front, a gauge tracking regional bourses

lost 0.4%, but was set for a weekly rise of over

2%.

Brazil's Bovespa slipped 0.1%, while Mexican stocks

lost 0.2%.

Argentina's peso traded at 1385 to the dollar in parallel

trade, while the MerVal index rose 0.6%, ahead of a

monetary policy report by the domestic central bank later in the

day.

A central bank survey showed analysts expect annual

inflation to stand at 138.1%, compared with an earlier estimate

of 146.4%.

Elsewhere, Romania's leu showed little reaction

after the local central bank cut its benchmark interest rate by

a quarter point.

Key Latin American stock indexes and currencies:

Latin American market

prices from Reuters

Stock indexes Latest Daily %

change

MSCI Emerging Markets 1104.49 0.03

MSCI LatAm 2222.10 -0.43

Brazil Bovespa 125841.64 -0.26

Mexico IPC 52548.98 -0.2

Chile IPSA 6479.94 -0.8

Argentina MerVal 1625004.56 0.76

Colombia COLCAP 1389.69 0.36

Currencies Latest Daily %

change

Brazil real 5.4976 -0.23

Mexico peso 18.1290 -0.29

Chile peso 932 0.24

Colombia peso 4098.99 -0.19

Peru sol 3.7955 -0.43

Argentina peso 915.5000 -0.16

(interbank)

Argentina peso 1385 1.44

(parallel)