Mexican peso jumps 1pc as economy reopens; Latam stocks falter

•  Mexico's coronavirus death toll has crossed 5,300, with 51,633 known cases.
• The Mexican peso could continue to track the optimistic turn in market sentiment in the coming sessions,
• As oil prices rose, Colombia's peso touched an over two-month high, while currencies of Chile and Brazil made minor moves.

Mexico's peso firmed 1% on Monday as it reopened its economy, and rising oil prices supported the Colombian peso, while Latin American stocks faltered as euphoria over a potential COVID-19 vaccine faded with earnings clouding Wall Street's rally.

Amid a push from the United States, Mexico pressed ahead with restarting operations in the automotive, mining and construction sectors after a lockdown, despite surging number of new cases of the novel coronavirus in the country.

Mexico's coronavirus death toll has crossed 5,300, with 51,633 known cases.

The peso rose for the fourth session in five. 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 Mexican peso could continue to track the optimistic turn in market sentiment in the coming sessions, analysts at Monex Europe said.

The dollar lagged as encouraging data from an early-stage trial by drugmaker Moderna Inc of its COVID-19 vaccine spurred bets of a faster economic recovery. A rally in the euro also undermined the greenback, after France and Germany proposed a fund that would offer grants to European Union regions and sectors hit hardest by the COVID-19 pandemic.

As oil prices rose, Colombia's peso touched an over two-month high, while currencies of Chile and Brazil made minor moves.

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.

As mixed earnings from Home Depot and Walmart led to a choppy Wall Street session, most regional stocks fell.

Brazil's Bovespa index traded steadily. Meat processor Marfrig topped the index after its quarterly profit more than doubled, but declines airline stocks and banks outweighed.

Mexican shares fell 1.7%, down for the fifth session in six.