Latin American stocks and currencies rebounded after the release of softer-than-expected U.S. retail sales data, which supported expectations of interest rate cuts from the Federal Reserve. The MSCI's index of Latin American equities jumped 1.2%, following modest gains on Wall Street. The dollar eased as U.S. retail sales barely rose in May and numbers for the prior month were revised significantly lower, suggesting the Fed could start cutting rates soon. This news provided relief to developing world markets that have been under pressure due to concerns about elevated U.S. rates and political shifts across global economies. Brazilian President Luiz Inacio Lula da Silva's government saw a slight increase in approval ratings to 36% in June, up from 35% in March, according to a poll by Datafolha. The disapproval rate of the leftist president was at 31%, down from 33% in March. Positive economic expectations also rose slightly, with 40% of people polled having positive expectations on Brazil's economy in June, up from 39% three months ago. Pessimistic views were at 28%, up from 27%. The poll was conducted from June 4-13 and interviewed over 2,000 people in 113 Brazilian cities. The Brazilian real has weakened by more than 8% since the end of March. Brazilian President Luiz Inacio Lula da Silva criticized the central bank and its chief, Roberto Campos Neto, for harming Latin America's largest economy. However, he also signaled that he would appoint a substitute who is not swayed by market jitters. The central bank is expected to pause its easing cycle in its meetings on Tuesday and Wednesday. Brazil's Bovespa index edged up 0.5% after hitting a seven-month low in the previous session. The Chilean peso stabilized ahead of a monetary policy decision, with the central bank expected to lower its benchmark interest rate by 25 basis points to 5.75%. The Hungarian forint firmed against the euro after the central bank cut its base rate by 25 basis points to 7%, as expected, opting for the smallest cut in its 14-month-old easing cycle. The Brazil Central Bank has released a set of indicators on economic activity and the labor market that continues to exhibit more strength than expected. The indicators show positive trends in economic activity and employment, indicating a stronger-than-expected recovery. The release of these indicators is significant as it provides valuable insights into the current state of the Brazilian economy and its prospects for growth. The Brazil Central Bank's assessment of the indicators suggests that the economy is performing well and is on track for a robust recovery. This news is encouraging for investors and businesses operating in Brazil, as it indicates a favorable economic environment for investment and expansion. [45609696]