Mexican peso leads Latam FX lower as dollar strengthens
Brazil's Petrobras jumps after MS upgrade
Mexico's ruling bloc confirmed supermajority in lower house
Victor Rodriguez tapped as next Pemex CEO
Latam stocks up 0.3%, FX down 0.3%
Updated at 2010 GMT
By Shashwat Chauhan and Lisa Pauline Mattackal
Aug 26 (Reuters) -Most Latin American currencies slipped on Monday as the dollar regained some footing after hitting multi-month lows last week, with Mexico's peso leading declines after ruling party Morena secured a supermajority in parliament.
The U.S. dollar recovered ground after slipping in the previous session after Federal Reserve Chair Jerome Powell on Friday said "the time has come" to lower interest rates.
The dollar index gained 0.2%, pressuring Latin American currencies. MSCI's index tracking regional currencies against the dollar .MILA00000CUS lost 0.3%.
Mexico's peso MXN=D3 slipped 1.8% to 19.428 per dollar after a rise of more than 2% on Friday, as investors remained wary of local political developments.
Mexico's electoral authority on Friday confirmed that ruling party Morena and its allies will hold a two-thirds supermajority in the lower house but fall just short of that level in the Senate when the new legislative term begins in September.
The Morena party intends to approve the first part of a series of constitutional changes proposed by outgoing President Andres Manuel Lopez Obrador including a reform of the judiciary that has rattled markets.
The dollar also caught a bid as investors sought safer assets as worries rose around escalating conflict in the Middle East, after militant group Hezbollah and Israel exchanged missiles.
"There appears to be a mild risk-off undertone to trading today as investors react to the heightened tensions around Israel (and) Lebanon over the weekend," said Shaun Osborne, chief FX strategist at Scotiabank.
However, he noted that "USD gains are mild and do not alter the trajectory of the dollar index, even from a short-term point of view."
Indeed, the LatAm currency index is on track for its best month since December, despite a steep sell-off in risk assets at the start of the month.
Copper producer Chile's peso CLP= ticked 0.3% higher as prices of the red metal rose, supported by a rebound in demand in China and on hopes of a U.S. rate cut in September. MET/L
Brazil's real BRL= and Colombia's peso COP= were little changed.
Brazil posted a larger-than-expected current account deficit in July, driven by an increase in the services account shortfall.
Among equities, Brazil's Bovespa .BVSP added 0.9%, boosted by a jump of over 7% jump in Petrobras PETR4.SA after brokerage Morgan Stanley upgraded its rating.
The state-owned oil firm was on track for its best day in nearly two years.
MSCI's index for regional stocks .MILA00000PUS rose 0.3%, and is also on track for monthly gains.
Elsewhere, Mexico's incoming president tapped academic Victor Rodriguez to be the next top executive of oil giant Pemex.
HIGHLIGHTS
** S&P downgrades Kenya's rating to 'B-' on weaker fiscal and debt trajectory
** Brazil's central bank needs to be more cautious due to strong economy, director says
** Nigerian economy grows over 3% in Q2 as oil output rises
Key Latin American stock indexes and currencies:
MSCI Emerging Markets .MSCIEF | 1104.28 | 0.33 |
MSCI LatAm .MILA00000PUS | 2299.15 | 0.27 |
Brazil Bovespa .BVSP | 136888.71 | 0.94 |
Mexico IPC .MXX | 53189.08 | -0.56 |
Chile IPSA .SPIPSA | 6442.64 | -0.32 |
Argentina Merval .MERV | 1593002.53 | -0.869 |
Colombia COLCAP .COLCAP | 1343.93 | 0.97 |
Currencies | Latest | Daily % change |
Brazil real BRL= | 5.5005 | -0.26 |
Mexico peso MXN= | 19.428 | -1.75 |
Chile peso CLP= | 905.36 | 0.29 |
Colombia peso COP= | 4022.84 | -0.03 |
Peru sol PEN= | 3.7292 | -0.12 |
Argentina peso (interbank) ARS=RASL | 949 | -0.263435195 |
Argentina peso (parallel) ARSB= | 1330 | 1.503759398 |
Major EM currencies so far this year https://tmsnrt.rs/3AEWxC6
Reporting by Shashwat Chauhan and Lisa Mattackal in Bengaluru; Editing by Sharon Singleton and Matthew Lewis
Asset collegati
Ultime news
Disclaimer: le entità di XM Group forniscono servizi di sola esecuzione e accesso al nostro servizio di trading online, che permette all'individuo di visualizzare e/o utilizzare i contenuti disponibili sul sito o attraverso di esso; non ha il proposito di modificare o espandere le proprie funzioni, né le modifica o espande. L'accesso e l'utilizzo sono sempre soggetti a: (i) Termini e condizioni; (ii) Avvertenza sui rischi e (iii) Disclaimer completo. Tali contenuti sono perciò forniti a scopo puramente informativo. Nello specifico, ti preghiamo di considerare che i contenuti del nostro servizio di trading online non rappresentano un sollecito né un'offerta ad operare sui mercati finanziari. Il trading su qualsiasi mercato finanziario comporta un notevole livello di rischio per il tuo capitale.
Tutto il materiale pubblicato sul nostro servizio di trading online è unicamente a scopo educativo e informativo, e non contiene (e non dovrebbe essere considerato come contenente) consigli e raccomandazioni di carattere finanziario, di trading o fiscale, né informazioni riguardanti i nostri prezzi di trading, offerte o solleciti riguardanti transazioni che possano coinvolgere strumenti finanziari, oppure promozioni finanziarie da te non richieste.
Tutti i contenuti di terze parti, oltre ai contenuti offerti da XM, siano essi opinioni, news, ricerca, analisi, prezzi, altre informazioni o link a siti di terzi presenti su questo sito, sono forniti "così com'è", e vanno considerati come commenti generali sui mercati; per questo motivo, non possono essere visti come consigli di investimento. Dato che tutti i contenuti sono intesi come ricerche di investimento, devi considerare e accettare che non sono stati preparati né creati seguendo i requisiti normativi pensati per promuovere l'indipendenza delle ricerche di investimento; per questo motivo, questi contenuti devono essere considerati come comunicazioni di marketing in base alle leggi e normative vigenti. Assicurati di avere letto e compreso pienamente la nostra Notifica sulla ricerca di investimento non indipendente e la nostra Informativa sul rischio riguardante le informazioni sopra citate; tali documenti sono consultabili qui.
