Mexico peso, stocks surge as U.S. bourses rebound

* Peso firms 1.5 pct, looks to end 6-session losing streak

* IPC stock index gains 1.23 pct, Grupo Mexico up 1.04 pct
(Recasts throughout)

MEXICO CITY, May 21 (BestGrowthStock) – Mexico’s peso rallied on
Friday, moving higher after a six-session losing streak as it
tracked a strong rebound in U.S. equities and a stabilization
in the price of oil, a key export commodity.

The peso (MXN=: ) (MEX01: ) firmed 1.53 percent to 12.9685 per
U.S. dollar bouncing back from a three-month low close on
Thursday, while the IPC stock index (.MXX: ) gained 1.23 percent
to 30,747.38 points.

Traders said Mexican assets were tracking a bounce in the
S&P 500 after several days of declines that had driven the
index down 12 percent from an April high. Oil prices (CLc1: )
pulled off a low below $70 a barrel. [O/R]

Mexico is a major oil exporter and the United States is its
top trading partner, tightly linking the view on local assets
to the fortunes of U.S. markets.

“Things are just really volatile,” said Alejandro Martinez,
a currency and debt strategist at HSBC in Mexico City.

“We are closely following the oil price in the case of the
peso but above all, the risk aversion indicators — principally
U.S. stocks (Read more about the stock market today. ). When the stock markets start to recover, the peso
does as well,” Martinez said.

The peso has slumped more than 6 percent since late April
amid mounting concerns that Europe’s debt crisis could stifle a
global economic recovery.

Mexico’s central bank left its benchmark interest rate
unchanged at 4.50 percent on Friday for the ninth straight
month, but said the fiscal crisis in Europe presented a new
risk for Mexico. [ID:nN21171735]

The yield on the government’s benchmark 10-year peso bond
(MX10YT=RR: ) bid down 0.02 percent to 7.51 percent.

In stock trading, shares in miner Grupo Mexico
(GMEXICOB.MX: ) rose 1.04 percent to 28.10 pesos while top
retailer Wal-Mart de Mexico (WALMEXV.MX: ) rose 1.18 percent to
28.20 pesos.

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Mexico peso, stocks surge as U.S. bourses rebound