Mexican peso extends selloff, stocks set for worst day in 2 wks
Updated at 1448 GMT
Stocks down 2%, FX off 1.2%
Mexico economy grows 0.2% in Q2; Aug CPI falls
Brazil's Vibra to buy remaining stake in Comerc
By Shubham Batra
Aug 22 (Reuters) -Latin American currencies dropped against the greenback on Thursday hurt by heavy losses in Brazilian real and Mexican peso as the dollar gained ahead of the all-important speech by Federal Reserve Chair Jerome Powell on Friday.
MSCI's gauge of Latam currencies .MILA00000CUS slipped nearly 1% to hit a two-week low.
The Mexican peso MXN= extended its decline for a fifth session, falling 0.8%, after a slew of economic data boosted hopes of a rate cut by the country's central bank at the end of September.
Consumer prices in Mexico eased in early August, while the domestic economy grew 0.2% in the second quarter from the previous three-month period, in line with market expectations.
"All told, the August mid-month CPI print, alongside the weak activity data for June (which were also released today) and the Fed's confirmation that it will kick off its loosening cycle next month means that we expect Banxico to lower its policy rate by another 25bp, to 10.50%, at its meeting on 26th September," said Kimberley Sperrfechter, emerging markets economist at Capital Economics.
Brazil's real BRL=, BRBY was the worst performing currency on the day with an over 1.2% fall against the U.S. dollar. Federal Reserve minutes on Wednesday signalled U.S. interest rate cuts were set to begin in a few weeks' time.
Peruvian sol PEN= was an outlier among the regional currencies that gained 0.2% as copper prices rose on falling metal inventories, easing worries over a potential U.S. economic recession and demand showing signs of improvement in China.
All eyes will be on Powell at 10 a.m. ET on Friday at the Jackhole Hole economic symposium. His comments will provide investors much-needed rate guidance to investors, who have fully priced in a 25 basis point cut in September.
A gauge of Latin American stocks .MILA00000PUS dropped around 2% dragged down by deep selloff in Argentina's Merval index .MERV, Chile's S&P IPSA index .SPIPSA and Brazil's Bovesopa .BVSP.
All three indexes were down between 0.6% and 1.6%.
Argentina's economic activity fell 3.9% in June compared to the same month last year, official data showed on Wednesday, as the economy shrunk again during the month after a rare rise in May.
Brazilian fuel distributor Vibra VBBR3.SA tumbled 3.6% after it had signed an agreement to exercise its right to buy the remaining stake in power generator and trader Comerc for 3.52 billion reais ($642 million).
Meanwhile, Brazil will tighten up rules to enter the country without a visa starting next week, the government said on Wednesday, after migrants have been increasingly using the South American nation as a stop-over on the way to the United States and Canada.
Key Latin American stock indexes and currencies at 1448 GMT:
Stock indexes | Latest | Daily % change | YTD % change |
MSCI Emerging Markets .MSCIEF | 1100.25 | -0.06 | 7.44 |
MSCI LatAm .MILA00000PUS | 2272.48 | -1.87 | -13.03 |
Brazil Bovespa .BVSP | 135539.68 | -0.68 | 1.01 |
Mexico IPC .MXX | 53939.54 | 0.14 | -6.01 |
Chile IPSA .SPIPSA | 6451.42 | -0.68 | 4.05 |
Argentina MerVal .MERV | 1592084.36 | -1.788 | 71.25 |
Colombia COLCAP .COLCAP | 1344.66 | -0.2 | 12.50 |
Currencies | Latest | Daily % change | YTD % change |
Brazil real BRBY | 5.5551 | -1.33 | -40.36 |
Mexico peso MXN=D2 | 19.4139 | -0.74 | 1.47 |
Chile peso CLP=CL | 920.2 | -0.51 | -33.20 |
Colombia peso COP= | 4064.25 | -0.93 | -26.63 |
Peru sol PEN=PE | 3.7593 | -0.61 | -13.89 |
Argentina peso (interbank) ARS=RASL | 944.5000 | 0.00 | -98.03 |
Argentina peso (parallel) ARSB= | 1330 | 1.88 | -98.55 |
Reporting by Shubham Batra in Bengaluru; editing by David Evans
Activos relacionados
Últimas noticias
Descargo de responsabilidades: Cada una de las entidades de XM Group proporciona un servicio de solo ejecución y acceso a nuestra plataforma de trading online, permitiendo a una persona ver o usar el contenido disponible en o a través del sitio web, sin intención de cambiarlo ni ampliarlo. Dicho acceso y uso están sujetos en todo momento a: (i) Términos y Condiciones; (ii) Advertencias de riesgo; y (iii) Descargo completo de responsabilidades. Por lo tanto, dicho contenido se proporciona exclusivamente como información general. En particular, por favor tenga en cuenta que, los contenidos de nuestra plataforma de trading online no son ni solicitud ni una oferta para entrar a realizar transacciones en los mercados financieros. Operar en cualquier mercado financiero implica un nivel de riesgo significativo para su capital.
Todo el material publicado en nuestra plataforma de trading online tiene únicamente fines educativos/informativos y no contiene –y no debe considerarse que contenga– asesoramiento ni recomendaciones financieras, tributarias o de inversión, ni un registro de nuestros precios de trading, ni una oferta ni solicitud de transacción con instrumentos financieros ni promociones financieras no solicitadas.
Cualquier contenido de terceros, así como el contenido preparado por XM, como por ejemplo opiniones, noticias, investigaciones, análisis, precios, otras informaciones o enlaces a sitios de terceros que figuran en este sitio web se proporcionan “tal cual”, como comentarios generales del mercado y no constituyen un asesoramiento en materia de inversión. En la medida en que cualquier contenido se interprete como investigación de inversión, usted debe tener en cuenta y aceptar que dicho contenido no fue concebido ni elaborado de acuerdo con los requisitos legales diseñados para promover la independencia en materia de investigación de inversiones y, por tanto, se considera como una comunicación comercial en virtud de las leyes y regulaciones pertinentes. Por favor, asegúrese de haber leído y comprendido nuestro Aviso sobre investigación de inversión no independiente y advertencia de riesgo en relación con la información anterior, al que se puede acceder aquí.
