*

Latam FX down 0.1%, stocks down 0.2%

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Colombia public debt puts sovereign rating at risk,

Moody's

analyst says

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Ukraine dollar bonds slip after Trump-Putin call

(Updates with mid-session prices)

By Nikhil Sharma and Purvi Agarwal

May 20 (Reuters) - Most Latin American stocks and

currencies took a breather on Tuesday after strong gains in the

previous session, while some lingering caution over the U.S.

growth outlook weighed on broader sentiment.

MSCI's index of Latam currencies was down

0.1%, as most currencies slipped against the greenback.

Chile's peso fell 0.7%, the most among peers,

tracking lower copper prices.

Brazil's real followed with a 0.4% loss. The world's

largest chicken exporter has been pressured since the first

commercial-farm outbreak of bird flu was confirmed last week,

prompting trade embargos from major importers.

Colombia's peso was flat, despite a top Moody's

analyst warning the country could face a ratings downgrade if it

fails to stabilize public debt and comply with the fiscal rule.

Global markets appeared to pause after a volatile session

triggered by Moody's downgrading the U.S. sovereign credit

rating, citing deficit concerns. The rating cut came at a time

when a sweeping tax-cut bill is headed for a vote in the House

of Representatives later this week.

The dollar index was down 0.4% on the day, continuing

its selloff from Monday, while Wall Street's main indexes also

fell.

"With conviction growing that the dollar has put in an

important top, emerging market currencies around the world are

catching a bid," said analysts at ING.

"The greenback should weaken for the remainder of the year

and investors should use temporary dollar strength to reduce or

hedge their exposure," said Mark Haefele, chief investment

officer at UBS Global Wealth Management.

The Peruvian sol and the Mexican peso,

however, capitalized on the dollar weakness to gain 0.1% and

0.2% respectively, with the latter at an over seven-month high.

Equities in the region did not do better, as the index

tracking them fell 0.2% after advancing over 1%

on Monday.

Declines in heavyweight Brazilian and Mexican

stocks outweighed gains in Argentina and Colombia

.

Elsewhere, the Romanian leu was down 0.5% against

the euro, relinquishing most of the gains it clawed back after

Sunday's surprise presidential election victory of centrist

Nicusor Dan over a hard-right rival.

Its central bank held out the prospect of policy easing

later this year if markets recover from recent election-induced

turmoil.

Nigeria's central bank kept rates on hold for the second

time in a row, amid improving macroeconomic indicators.

Ukraine's international bonds slipped, with the 2035

maturity bond sliding more than one cent

against the dollar, as investors weighed the possibility of an

end to a three-year-old Russian war in Ukraine.

U.S. President Donald Trump said after his planned call with

Russian President Vladimir Putin that Moscow has agreed to

immediately start negotiations for a ceasefire. However, the

Kremlin said Trump and Putin did not discuss a timeline for a

ceasefire.

Key Latin American stock indexes and currencies:

Latin American market

prices from Reuters

Equities Latest Daily %

change

MSCI Emerging Markets 1167.64 0.09

MSCI LatAm 2275.27 -0.14

Brazil Bovespa 139624.86 -0.01

Mexico IPC 58432.91 -0.1

Chile IPSA 8397.47 0.06

Argentina Merval 2375770.1 0.26

7

Colombia COLCAP 1666.38 0.49

Currencies Latest Daily %

change

Brazil real 5.6712 -0.35

Mexico peso 19.2694 0.19

Chile peso 943.75 -0.7

Colombia peso 4168.5 -0.02

Peru sol 3.686 0.11

Argentina peso (interbank) 1142.5 -0.13

Argentina peso (parallel) 1155 0.87