Peru's sol rises on positive data, Russian tensions persist
* Brazilian miners resume production in Minas Gerais
* Russian rouble volatile, bonds weaken
* Latam FX, stock muted in thin trade (Writes through with Latam)
By Susan Mathew and Ambar Warrick
Jan 17 (Reuters) - Peru's sol led gains among its Latin American peers on Monday after data showed the economy expanded in November, while Russian assets remained under pressure as tensions between Moscow and the West showed little sign of easing.
The sol PEN= rose 0.7% to a more-than six-month high to the dollar, after data showed the Peruvian economy grew by 3.5% in November.
Still, the reading was its slowest pace of growth since March, as the country's key mining sector remained pressured by environmental protests.
Russia's rouble RUB= was flat against the dollar in volatile trade, while investors continued to offload debt in the country.
Yields on Russia's 10-year benchmark OFZ government bonds stayed near six-year highs RU10YT=RR . Ukraine's dollar-denominated sovereign bonds also fell and both countries' default insurance costs jumped.
German Foreign Minister Annalena Baerbock said on Monday that she hoped mounting tensions with Russia over Ukraine could be solved by diplomacy, but she warned that Moscow would suffer if it does attack the country.
Talks between Moscow and Western states on Russia's deployment of tens of thousands of troops along Ukraine's border ended with no breakthrough last week. A cyber attack against Ukraine has further inflamed tensions.
"Geopolitical wobbles are shaking (Commonwealth of Independent States) assets. As a result, both Ukrainian and Russian lines cheapened versus their ratings. It seems that rhetoric will continue to be the made driver of yields for the time being," said EM strategists at TD Securities.
In China's troubled property sector, the biggest homebuilder by sales, Country Garden 2007.HK , saw its bonds slump again up to 17 points, leaving most of its international market debt at 25%-35% below its face value. XS175011846=1M XS188044271=1M XS221096002=1M
In Latin America, Brazil's real BRBY hovered near two-month highs after economic activity rose a seasonally adjusted 0.69% in November, marking its strongest monthly print since February following four months of consecutive drops.
Still, prospects for the final quarter are weak, with double-digit inflation weighing on consumption and investment decisions.
Most other regional currencies MXN= CLP= COP= fell against a stronger dollar.
Stocks in Latam fell in thin trade owing to a holiday in the United States, with Brazil's Bovespa .BVSP retreating from a near one-month high.
Shares of Brazil's Aliansce Sonae ALSO3.SA fell 2.3% after it said it will keep pushing for a merger with shopping mall operator BR Malls BRML3.SA even after the rival turned down its offer last week. BR's shares rose 2%.
Brazilian miners, including Vale SA VALE3.SA began resuming production in the southeastern state of Minas Gerais after being forced to halt some operations due to heavy rains.
Key Latin American stock indexes and currencies:
Daily % change MSCI Emerging Markets
Daily % change Brazil real
Colombia peso COP=
0.00 Peru sol
-0.15 (interbank) ARS=RASL
Reporting by Susan Mathew in Bengaluru; Editing by Frank Jack Daniel
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.