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Bonds News

EMERGING MARKETS-Latam stocks rise; commodity-linked currencies lead gains

    * 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

    By Ambar Warrick
    July 2 (Reuters) - Latin American stocks and currencies rose
on Thursday as strong U.S. jobs data pointed to a swift economic
recovery from the coronavirus, with oil- and metal-linked
currencies leading gains.
    Data showed the U.S. economy created jobs at a record pace
in June as the country re-emerged from a coronavirus-driven
lockdown. Wall Street rallied on the news, while the U.S. dollar
retreated.
    Closer to home, 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.
    Still, gains on the day were fairly constrained in Latin
America as coronavirus cases and deaths continued to rise.
Brazil, the region's largest economy, saw the death toll surpass
60,0000 on Wednesday, while the number of infections crossed 1.4
million.
    The Mexican and Colombian pesos rose on a rise
in 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 prices of copper,
Chile's top export, rallied due to supply disruptions in the
country. 
    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. The mine had produced 71,700
tonnes of copper in 2019, or approximately 1.2% of Chile´s total
output.
    Chilean stocks rose about 1.9%.
    Emerging market equities had started the second half of the
year on fairly solid footing, posting strong gains in the June
quarter as they recovered from the coronavirus selldown. Still,
they were well off pre-pandemic highs, as an increasing number
of virus cases stifled extended gains.
    Argentina's peso was muted for the day, as markets
digested a report that the country may alter the proposed
payment schedule for its restructured bonds.
    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: 
    
    Stock indexes             Latest     Daily % change
 MSCI Emerging Markets         1025.53               2.44
                                        
 MSCI LatAm                    1979.93               3.18
                                        
 Brazil Bovespa               97489.45               1.34
                                        
 Mexico IPC                   38081.28               1.23
                                        
 Chile IPSA                    4113.00               1.88
                                        
 Argentina MerVal                    -                  -
                                        
 Colombia COLCAP               1124.24               1.29 Currencies             Latest     Daily % change
 Brazil real                    5.2749               0.79
                                        
 Mexico peso                   22.4077               1.15
                                        
 Chile peso                      806.3               0.92
                                        
 Colombia peso                 3657.81               1.52
 Peru sol                       3.5147               0.37
                                        
 Argentina peso                70.5700              -0.07
 (interbank)                            
                                        
 

 (Reporting by Ambar Warrick in Bengaluru; editing by Jonathan
Oatis)
  
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