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Brazil's jobless rate falls below expectations

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U.S. consumer spending drops unexpectedly in May

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MSCI Latam FX flat, stocks off 0.1%

(Updates with mid-session prices)

By Ragini Mathur, Purvi Agarwal and Pranav Kashyap

June 27 (Reuters) -

Latin American currencies were steady on Friday as investors

weighed a fresh U.S. inflation report and kept a watchful eye on

evolving trade talks with the U.S., while regional stocks were

mixed.

The dollar index was flat, still trading around

levels last seen in February 2022.

Investors braced for a possible dovish shift from the

U.S. Federal Reserve, spurred by reports of President Donald

Trump considering an early shake-up at the Fed's helm and a

surprise dip

in May consumer spending.

A trade agreement on Thursday between the United States and

China on how to expedite rare earth shipments to the United

States was also seen as a positive sign, as Trump hinted at more

upcoming deals.

A gauge for Latin American currencies held

steady, but was poised for its fourth straight weekly gain. A

similar gauge for stocks slipped 0.1%, though

still on track for its best week since late April.

Investors have had numerous catalysts to take on riskier

assets this week, including a truce between Iran and Israel and

some easing tariff pressures.

"Investors are starting to recognize that Latin America

is somewhat of a safe-haven region amidst trade and geopolitical

uncertainty," said Alejo Czerwonko, CIO of emerging markets

Americas at UBS Global Wealth Management.

"Mexico received zero additional tariffs on April 2nd ...

meaning Latin America remains far from the eye of the trade

storm."

Mexico's benchmark bourse was flat on the day,

but was poised for its best week in over a month after the

central bank delivered a widely expected 50 basis-point rate cut

on Thursday.

Mexico's peso advanced 0.1%.

Brazil's real held steady, but remained on course

for a fourth consecutive weekly win, its longest streak in

nearly two months, helped by data showing

unemployment

dipping below forecasts.

However, Brazil's central bank

signaled

it isn't currently considering further rate cuts.

Separately, the country's General Market Price Index

fell more than expected in June, to 1.67%.

Chile's peso depreciated 0.9%, after three sessions

of gains as copper prices retreated from three-month highs.

Elsewhere, Colombia's peso tumbled nearly 1%, its

sharpest intraday drop in over two weeks. The country's central

bank held interest rates steady at 9.25%, as expected.

The slide in the currency also comes as both S&P and

Moody's

downgraded

Colombia's debt, citing fiscal slippage.

The government, last week, moved to suspend its fiscal

rule and widen its 2025 deficit target.

Colombia's stock index led regional declines, down

0.8%, while Brazil's Bovespa slipped 0.3%.

Argentina's Merval looked set to notch its

longest weekly losing streak in more than four months.

Elsewhere in emerging markets, the South African rand

was largely flat. Traders kept an eye on a potentially

disruptive dispute between President Cyril Ramaphosa and his

main coalition partner.

Key Latin American stock indexes and currencies:

MSCI Emerging Markets 1226.09 -0.07

MSCI LatAm 2307.87 -0.13

Brazil Bovespa 136748.77 -0.27

Mexico IPC 57497.15 0.04

Argentina Merval 2034443.58 -0.221

Chile IPSA 8170.23 -0.08

Colombia COLCAP 1665.89 -0.76

Brazil real 5.4872 0.02

Mexico peso 18.8577 0.13

Chile peso 939.56 -0.88

Colombia peso 4087.5 -0.95

Peru sol 3.549 -0.03

Argentina peso (interbank) 1187.5 0.13

Argentina peso (parallel) 1190 1.68