【memories grand bahama beach and casino】EMERGING MARKETS-Latam stocks weaken as risk rally pauses

By Susan Mathew June 4 (Reuters) - Latin American stocks fell on Thursday and Mexico's peso eased off 12-week highs as a recent rally in risk assets on hopes of an economic recovery lost steam. MSCI's index of Latam stocks broke a three-day winning streak,memories grand bahama beach and casino with Brazil's Bovespa Mexico's IPC index both giving up about half a percent. But "the rally could have another leg higher, especially as the dollar looks to be on a downward trajectory, which may be a sign that investors are growing more optimistic and increasing their risk exposure," said Hussein Sayed, chief market strategist at FXTM. Monetary and fiscal stimulus, increasing business activity around the globe and data showing improvement in some economic indicators lifted sentiment this week. Brazil's real broke a two-day super rally when it gained about 5%, to trade 0.7% lower. The central bank on Wednesday signaled that policymakers may be prepared to cut interest rates more than they have previously indicated. A Reuters poll showed that along with broader emerging market peers, Latam currencies are on a recovery path but depend heavily on calmer domestic politics and signs of economic recovery. Brazil is moving aggressively to open its economy even as it posts a record number of coronavirus related deaths. Latin America has become a hot spot in the outbreak, with Brazil in No. 2 spot globally in number of infections; Mexico overtook the United States in daily reported deaths this week. Mexico's peso fell 0.5% against a steady dollar as oil prices declined. The country's mining chamber on Wednesday said output will likely fall by about 17% in 2020. Mexico had restarted the mining industry last month after deeming it an essential sector. Chile's peso gained 2% a day after the country's central bank said it would gradually scale back its foreign exchange intervention program in the non-deliverable forward markets and speak with its U.S. and Chinese counterparts to broaden the country's foreign exchange lines. "We expect the CLP to underperform its peers in the near term as the (central bank) buys dollars, although we think it is likely to continue trading with the broad macro environment and find support from (U.S.) Treasury sales," said Citigroup analysts. Key Latin American stock indexes and currencies at 1400 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 987.52 -0.05 MSCI LatAm 1951.68 -2.29 Brazil Bovespa 92521.29 -0.52 Mexico IPC 38095.87 -0.51 Chile IPSA 3810.69 -0.57 Argentina MerVal 0.00 0 Colombia COLCAP 1153.08 -0.43 Currencies Latest Daily % change Brazil real 5.1370 -1.05 Mexico peso 21.8732 -0.53 Chile peso 775.3 -0.64 Colombia peso 3598.11 0.22 Peru sol 3.4168 -0.44 Argentina peso 68.8800 -0.10 (interbank) (Reporting by Susan Mathew in Bengaluru; editing by Jonathan Oatis)

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