May 19, 2020 / 9:08 PM / 7 days ago

EMERGING MARKETS-Mexican peso firms as economy reopens; Latam stocks falter

    * Report questions potential coronavirus vaccine trial 
    * Colombian peso hits over two-month high as oil prices rise
    * Latam economy to shrink at record pace in 2020 -Goldman
Sachs 

 (Adds details, updates prices)
    By Shreyashi Sanyal
    May 19 (Reuters) - Mexico's peso firmed on Monday as it
reopened its economy, and rising oil prices supported the
Colombian peso, while Latin American stocks faltered as a report
questioned the validity of trial results for a potential
COVID-19 vaccine. 
    Amid pressure from the United States, Mexico restarted
operations in the automotive, mining and construction sectors,
despite surging number of new COVID-19 cases in the country.

    The peso rose 0.4%. The currency has recovered nearly
10% from April lows as oil prices recover from a couple of
shocks, but the peso still remains about 19% lower for the year.
    Although the medium- and long-term forecasts for the Mexican
economy remain under pressure, the peso could continue to track
the optimistic turn in market sentiment in the coming sessions,
analysts at Monex Europe said.
    Goldman Sachs economists said on Tuesday Latin America's
economy will shrink 7.6% this year in the steepest downturn on
record and a return to pre-coronavirus crisis levels will take
at least another two years.
    A report by STAT News questioned the validity of results
from an early-stage trial by U.S. drugmaker Moderna Inc
of its COVID-19 vaccine.
    Colombia's peso hit a 10-week high, while currencies
of Chile and Brazil were rangebound. 
    April, May, June and July will be the worst months of the
coronavirus crisis in Brazil, and starting in August the economy
will be able to pick back up, Economic Policy Secretary Adolfo
Sachsida said on Monday.
    Credit rating agency Moody's on Monday warned of the growing
risks to its "stable" outlook on Brazil's sovereign debt rating,
noting an even deeper recession than currently forecast could
require prolonged fiscal support from the government.

    Brazil's Bovespa index slipped 0.6%, while Mexican
shares sank 3.4%, down for the fifth session in six.     
    Key Latin American stock indexes and currencies at 2056 GMT:
   
    
    Stock indexes              Latest        Daily % change
 MSCI Emerging Markets             925.22                 1.39
                                           
 MSCI LatAm                       1608.21                -1.46
                                           
 Brazil Bovespa                  80742.35                -0.56
                                           
 Mexico IPC                      35862.04                -3.37
                                           
 Chile IPSA                       3729.97                -0.88
                                           
 Argentina MerVal                39388.72               -2.229
                                           
 Colombia COLCAP                  1067.65                -1.41
                                           
                                                              
       Currencies              Latest        Daily % change
 Brazil real                       5.7535                 0.11
                                           
 Mexico peso                      23.6689                 0.33
                                           
 Chile peso                         817.8                 0.35
                                           
 Colombia peso                       3832                 0.50
 Peru sol                           3.426                 0.02
                                           
 Argentina peso                   67.9000                -0.12
 (interbank)                               
                                           
 

 (Reporting by Shreyashi Sanyal and Susan Mathew; Additional
reporting by Miguel Gutierrez in Mexico City; editing by
Jonathan Oatis)
  
Nuestros Estándares:Los principios Thomson Reuters
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