Latin American markets rise as dovish Fed bets weaken dollar
Updated at 1510 GMT
Chile GDP slips in Q2
Brazil's XP predicts rate hikes at BCB's next meeting
Mexican economy up 1.1% y/y in July
Colombian markets closed
MSCI Latin American stocks index up 1.2%, FX up 0.7%
By Lisa Pauline Mattackal
Aug 19 (Reuters) -Most Latin American stocks and currencies tracked emerging market peers higher on Monday, as growing hopes of stable economic growth and looser monetary policy in the United States lifted risk sentiment and weakened the dollar.
The dollar =USD weakened 0.5% against a basket of currencies to January lows, lifting MSCI's international emerging market currency index .MIEM00000CUS 0.7% to a record high at the start of a week packed with central bank events.
MSCI's index tracking Latin American currencies .MILA00000CUS jumped 0.7%, while an index of stocks .MILA00000PUS gained 1.2% to an over two-month high.
After bouts of volatility, emerging market assets looked set to build on gains from the previous week as data pointing to U.S. economic growth soothed worries about slowing global demand.
Focus will now be on U.S. Fed Chair Jerome Powell's Friday speech in Jackson Hole, where investors anticipate he will acknowledge the case for easing borrowing costs.
On the data front, Chile's peso CLP= gained over 1% against the dollar, with a rise in copper prices offsetting data that showed the country's gross domestic product (GDP) slipped in the second quarter.
Chile's Q2 GDP fell 0.6% on a quarterly basis, in line with forecasts and likely opening the door for more interest rate cuts this year.
Brazil's real BRBY also notched gains of over 1% against the dollar, trading at an over one-month high, while the country's main stock index .BVSP gained about 1%.
Economists now see Brazil's benchmark interest rate at the end of 2025 at 10% from the 9.75% previously expected, a weekly central bank survey showed. A growing number of forecasters now see the bank hiking rates at its September meeting.
"The (monetary policy committee) Copom has emphasized its data-dependent stance. And recent indicators suggest that monetary policy is not sufficiently restrictive," XP economists led by Caio Megale wrote in a note to clients.
The Mexican peso MXN=D2, however, lagged regional peers, losing 0.6% after rising for the past four trading sessions.
Preliminary estimates showed Mexico's economy likely grew 1.1% in July compared with the same month a year earlier, national statistics agency INEGI said, and the economy likely dropped 0.1% on a monthly basis.
On a year-to-date basis, all major Latin American currencies still remain down against the dollar with the greenback strengthening nearly 12%, 11%, and 4% respectively against the Mexican peso, Brazilian real and Colombian peso.
Among local equity markets, Argentina's Merval .MERV led gains, up 1.1% while stocks in Peru .SPBLPGPT underperformed, losing 0.3%.
Local Colombian markets were closed for a holiday.
HIGHLIGHTS
** Beryl-battered Grenada becomes first to use government bond hurricane clause
** India might need more cautious monetary policy to stem food price rise spillover, cenbank says
** Libya's central bank resumes operations after release of kidnapped official
Key Latin American stock indexes and currencies
MSCI Emerging Markets .MSCIEF | 1104.02 | 0.95 |
MSCI LatAm .MILA00000PUS | 2343.25 | 1.18 |
Brazil Bovespa .BVSP | 135264.8 | 0.98 |
Mexico IPC .MXX | 54237.59 | 0.28 |
Chile IPSA .SPIPSA | 6460.77 | 0.87 |
Argentina Merval .MERV | 1668026.98 | 1.134 |
Currencies | Latest | Daily % change |
Brazil real BRL= | 5.4153 | 1.1 |
Mexico peso MXN= | 18.736 | -0.56 |
Chile peso CLP= | 926.71 | 1.19 |
Colombia peso COP= | 4027.11 | 0.09 |
Peru sol PEN= | 3.7328 | -0.36 |
Argentina peso (interbank) ARS=RASL | 943.5 | -0.158982512 |
Argentina peso (parallel) ARSB= | 1330 | 1.127819549 |
Emerging market currencies gain as dollar weakens https://reut.rs/3X8O82n
Reporting by Lisa Mattackal and Marcela Ayres; Editing by Nick Zieminski
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.