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Bonds News

EMERGING MARKETS-Mexican peso falls, Latam FX muted in thin trading

    * Mexican peso falls for first time in four sessions 
    * Stock markets closed in Brazil, Chile, Colombia &
Argentina 
    * Chilean, Colombian pesos muted in light trading

 (Updates prices throughout)
    By Shreyashi Sanyal
    Oct 12 (Reuters) - Mexico's peso fell on Monday after data
pointed to slowing industrial recovery in the country, while
other Latin American currencies were subdued in light trading as
major markets in the region were shut. 
    The peso fell for the first time in four sessions,
sliding 0.5% as industrial output rose 3.3% in August, less than
half of July's figure, in Latin America's second largest
economy, according to the national statistics agency.

    Mexican industry expanded less in August than in previous
months as the country's recovery from a coronavirus shutdown
slows.
    The government unveiled a fiscal package last week of about
$14 billion, which was seen as the first concrete sign of a
renewed readiness by corporate bosses to invest under President
Andres Manuel Lopez Obrador.
    Mexico's currency has benefited in the recent months from a
steady economic rebound in its main trading partner, the United
States. The peso is also expected to be sensitive to November's
U.S. presidential vote.   
    Analysts say a victory for Democrat Joe Biden could bode
well for emerging markets. 
    "A Biden presidency will likely be seen as a favorable
outcome given a less confrontational approach on tariffs, with
the primary beneficiaries like the Chinese yuan, Mexican peso
and South African rand," said FX strategists at J.P. Morgan. 
    "A Biden presidency with a split Congress is likely to be
considered the most positive outcome."
    Mexican equities fell after the main stock exchange
suspended operations before midday on Friday due to what it said
was an outage in the system used to process trading orders.

    Shares of Grupo Aeromexico rose 7.5% to their
highest level in six weeks after news that the airline had
received definitive approval for a financing plan as it works
through bankruptcy proceedings in a U.S. court.
    The Chilean peso fell 0.2%, while Colombia's peso
 was flat against the dollar. 
    An International Monetary Fund mission concluded a visit to
Argentina on Sunday, after several days of preliminary talks
aimed at repaying about $44 billion owed by the cash-strapped
government to the fund, a government source said.
    Stock markets in Brazil, Chile, Colombia and Argentina were
closed on Monday, due to public holidays in the regions. FX
markets in Brazil and Argentina were shut.      
    Key Latin American stock indexes and currencies 2030 GMT:
    
           Stock indexes                    Latest   Daily %
                                                     change
 MSCI Emerging Markets                      1137.17     1.31
 MSCI LatAm                                 1919.34    -0.23
 Brazil Bovespa                                   -        -
 Mexico IPC                                38292.43    -0.48
 Chile IPSA                                       -        -
 Argentina MerVal                                 -        -
 Colombia COLCAP                                  -        -
                                                            
               Currencies                   Latest   Daily %
                                                     change
 Brazil real                                      -        -
 Mexico peso                                21.1720    -0.15
 Chile peso                                   797.5     0.00
 Colombia peso                               3823.5     0.00
 Peru sol                                         -        -
 Argentina peso (interbank)                       -        -
                                                     
 Argentina peso (parallel)                        -        -
                                                     
 
 

 (Reporting by Shreyashi Sanyal in Bengaluru
Editing by Marguerita Choy and Sonya Hepinstall)
  
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