* China, U.S. July retail sales disappoint * Mexican peso outperforms peers for the week * Aeromexico surges after financing announcement * JBS, Natura top gainers in Brazil * U.S.-China trade talks over the weekend awaited (Updates prices) By Shreyashi Sanyal and Susan Mathew Aug 14 (Reuters) - Mexico's peso firmed for the fourth straight session on Friday on signs that the pace of further monetary policy easing could slow, while other major Latin American currencies declined after economic data from China and the United States disappointed. Figures showing China's retail sales unexpectedly slipped in July were followed by the same metric in the United States rising less than expected. Risk appetite dwindled on the prospect of a delayed economic rebound, with China being one of Latam's biggest trading partners. Brazil's real slipped 1.2% against a weaker dollar even as a central bank indicator showed economic activity in Brazil expanded at a record pace in June, and as Goldman Sachs revised up its 2020 outlook for the country's economy to a contraction of 5% from the prior 7.5%. The Chilean and Colombian pesos fell and posted weekly declines, with oil exporter Colombia's peso marking its fifth straight week in the red as demand for crude remained lackluster. Data showed Colombia's economy shrank 15.7% in the second quarter, slightly less than a historic 16% expected by analysts. Mexico's peso rose 1%. The fact that Thursday's decision by Mexico's central bank to cut the country's key interest rate was not unanimous was seen as a sign that the pace of future cuts could slow. But "with the economy already in recession last year and with rates so high relative to most of Mexico's peers, there is room to cut without it leading to a currency crash," said analysts at Rabobank. The currency outperformed regional peers for the week, up 1.7%. A central bank member on Friday said Mexico's economic recovery from the coronavirus pandemic is more likely to be U-shaped. Investors now await the outcome of a meeting between U.S. and Chinese officials over the weekend about their Phase 1 trade deal amid deteriorating relations between the world's two largest economies. Among stocks, Argentina's Merval slipped 2.4%. The country might delay its formal $65 billion bond restructuring offer beyond Aug. 24, a source told Reuters. Aeromexico surged 9.4% after the troubled Mexican carrier said it had lined up $1 billion in debtor-in-possession financing with Apollo Global Management Inc . In Brazil, cosmetics maker Natura & Co topped the main index after it said quarterly e-commerce sales surged and that it will relaunch the Avon brand in the third quarter "with a new business model." Meat packer JBS SA jumped 5.2%. The company put plans for a U.S. listing back on its agenda but said it will not happen this year. Key Latin American stock indexes and currencies 1924 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1091.66 -0.41 MSCI LatAm 2001.52 -0.02 Brazil Bovespa 101038.80 0.58 Mexico IPC 38908.64 0.76 Chile IPSA 4013.62 0.22 Argentina MerVal 48418.87 -2.434 Colombia COLCAP 1148.92 -0.09 Currencies Latest Daily % change Brazil real 5.4316 -1.21 Mexico peso 21.9931 0.63 Chile peso 798.1 -0.70 Colombia peso 3791.25 -0.77 Peru sol 3.5707 -0.03 Argentina peso 73.1500 -0.05 (interbank) (Reporting by Shreyashi Sanyal in Bengaluru; editing by Jonathan Oatis)
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