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EMERGING MARKETS-Latam stocks up; Mexican, Colombian pesos lead FX gains – Reuters


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EMERGING MARKETS-Latam stocks up; Mexican, Colombian pesos lead FX gains – Reuters

* Mexican, Colombian pesos rise on oil prices * Chile’s peso supported by copper gains * U.S. jobs report helps risk appetite * Rising COVID-19 cases still weigh (Adds comments, updates prices) By Shreyashi Sanyal July 2 (Reuters) – Latin American stocks and currencies rose on Thursday, led by oil- and metal-linked currencies, after record…

EMERGING MARKETS-Latam stocks up; Mexican, Colombian pesos lead FX gains – Reuters
    * Mexican, Colombian pesos rise on oil prices
    * Chile's peso supported by copper gains
    * U.S. jobs report helps risk appetite
    * Rising COVID-19 cases still weigh

 (Adds comments, updates prices)
    By Shreyashi Sanyal
    July 2 (Reuters) - Latin American stocks and currencies rose
on Thursday, led by oil- and metal-linked currencies, after
record U.S. job gains boosted hopes for a swift recovery from
the pandemic-triggered recession.
    Data showed the U.S. economy added 4.8 million jobs in June
as the country started to reopen from a coronavirus-driven
lockdown.
    Wall Street initially rallied on the news but tempered gains
as Florida reported a record-shattering 10,000 new COVID-19
cases, fueling demand for the safe-haven dollar.
    Brazil's real and stocks gained after
industrial production rose 7% in May, its second biggest monthly
increase on record as economic activity started to pick up.

    "Going forward, we expect the underperforming industrial
sector to enter a gradual recovery path in tandem with the
expected gradual easing of social distancing protocols and
measures to limit movement and activity," Goldman Sachs analysts
wrote in a note.
    Gains on the day were constrained in Latin America as
coronavirus cases and deaths continued to rise. The death toll
in Brazil, the region's largest economy, surpassed 60,0000 on
Wednesday, while the number of infections crossed 1.4 million.

    The Mexican and Colombian pesos rose on higher
oil prices, as crude markets bet on improving demand in the wake
of the positive U.S. jobs report.
    Chile's peso rose about 0.9% as the price of copper,
Chile's top export, rallied on supply disruptions in the
country.
    Chilean stocks jumped 3.5%.
    Global miner BHP said on Wednesday it would begin
to ramp down activity at its small Cerro Colorado copper mine in
Chile due to the coronavirus.
    Emerging market equities had started the second half of the
year on solid footing, posting strong gains in the June quarter
as they recovered from the coronavirus-triggered sell-off.
Still, they were well off pre-pandemic highs, as an increasing
number of virus cases stifled extended gains.
    "South America is sliding into the worst downturn it's seen
since 1901 due to the corona crisis. That is a shame as so many
areas of Latam were showing so much potential," Danielle
DiMartino Booth, chief executive and chief strategist at Quill
Intelligence, told the Reuters Global Markets Forum. 
    Argentina may alter the proposed payment schedule for its
restructured bonds, a report said.
    The country's creditors have about 22 days to clinch a deal
to revamp about $65 billion in distressed bonds.    
    Key Latin American stock indexes and currencies at 2020 GMT:
    
 Stock indexes          Latest        Daily %
                                      change
 MSCI Emerging            1023.61           2.25
 Markets                           
 MSCI LatAm               1935.89           0.89
                                   
                                   
 Brazil Bovespa          96196.06          -0.01
                                   
 Mexico IPC              37864.49           0.65
                                   
 Chile IPSA               4177.26           3.47
                                   
 Argentina MerVal        39524.06          -0.81
                                   
 Colombia COLCAP          1118.97           0.82
                                   
                                                
    Currencies          Latest        Daily %
                                      change
 Brazil real               5.3611          -0.24
                                   
 Mexico peso              22.4517           0.95
                                   
 Chile peso                 801.5           1.52
                                   
 Colombia peso            3644.47           1.89
                                   
 Peru sol                  3.5208           0.20
                                   
 Argentina peso           70.5700          -0.07
 (interbank)                       
                                   
 Argentina peso               125           2.40
 (parallel)                        
                                   
 
     

 (Reporting by Shreyashi Sanyal and Ambar Warrick in Bengaluru;
Additional reporting by Lisa Pauline Mattackal in Bengaluru;
editing by Jonathan Oatis and Richard Chang)
  

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