Latam FX poised for weekly losses, Sri Lankan bonds jump
Fitch unlikely to raise Brazil's credit rating soon- director
Mexico's top court accepts constitutional challenge to judicial overhaul
IMF, Ghana reach staff-level deal on $3 billion loan-programme review
Romanian holds benchmark interest rate steady
Latam FX up 0.6%, stocks up 1.1%
By Ankika Biswas
Oct 4 (Reuters) -An index for Latin American currencies was set for its first weekly decline in five on Friday, as fears of an escalation in Middle East tensions dampened risk sentiment, while Sri Lanka's dollar-denominated bond prices jumped by around 2 cents on support for its debt restructuring.
The MSCI Latam currencies index .MILA00000CUS nudged lower on the week as a flight to safe-haven assets boosted the U.S. dollar, which was trading at a seven-week high also supported by a surge in U.S. jobs growth.
With the jobs report sparking a debate on whether upcoming U.S. rate cuts could be smaller, Bank of America analyst Aditya Bhave now expects 25 basis point cuts at each meeting until March 2025, and then 25 bps per quarter until end-2025.
The currencies index had risen for the past four weeks, on optimism around the Federal Reserve's eventual 50 bp interest-rate cut, with China's recent set of stimulus measures also boosting sentiment towards emerging market stocks and currencies.
A 0.6% intraday rise for the FX index helped contain the weekly loss. The Mexican peso MXN= led the pack, strengthening 0.7% against the dollar.
Mexico's Supreme Court agreed to consider a constitutional challenge to a controversial judicial overhaul that will move the country over the next few years to a system of popularly elected judges.
Brazil's real BRL= edged up 0.1% against the dollar, while Chile's peso CLP= and Peru's sol PEN= were down around 0.4% each.
Fitch is unlikely to upgrade Brazil's credit rating in the near-term, despite its better-than-expected economic growth, because of doubts the country will be able to significantly improve public finances, a director in its sovereign ratings group said.
Brazil's government published an executive order that effectively rolls out a minimum 15% tax on the profits of multinational corporations. This comes as it seeks new revenue sources to meet fiscal targets including reducing the fiscal deficit to zero, while being loath to adopt broad spending cuts.
Elsewhere, Sri Lanka's $12.5 billion bondholder debt rework received support from bilateral creditors and the International Monetary Fund, a huge boost to the nation's fragile economy.
The country's short-dated dollar-denominated bonds maturing in 2029 USY8137FAP37=TE saw the biggest price jump, up 2.9 cents on the dollar to be bid at 58.37 cents, Tradeweb data showed.
Maturities such as the 2030 US85227SBB16=TE and 2027 US85227SAT33=TE bonds were also up more than 2 cents.
IMF staff and officials in Ghana reached an agreement on their third review of the West African country's $3 billion IMF loan program.
In Europe, Romania held its benchmark interest rate at 6.50%, after two consecutive cuts, expecting inflation's downward path to be more erratic and as uncertainty remains high ahead of elections.
HIGHLIGHTS:
** South Africa sells 1 billion rand of inflation-linked bonds at auction
** Polish rate-setters point to energy prices as reason for CPI rise, minutes show
** Goldman sees later Turkey rate cut, higher year-end inflation
Key Latin American stock indexes and currencies at 1443 GMT:
Equities | Latest | Daily % change |
MSCI Emerging Markets .MSCIEF | 1175.26 | 0.19 |
MSCI LatAm .MILA00000PUS | 2235.54 | 1.13 |
Brazil Bovespa .BVSP | 131637.3 | -0.03 |
Mexico IPC .MXX | 52169.78 | 0.96 |
Chile IPSA .SPIPSA | 6443.36 | 0.84 |
Argentina Merval .MERV | 1754992.39 | 0 |
Colombia COLCAP .COLCAP | 1307.02 | 0.29 |
Currencies | Latest | Daily % change |
Brazil real BRL= | 5.4686 | 0.13 |
Mexico peso MXN= | 19.2109 | 0.67 |
Chile peso CLP= | 924.1 | -0.45 |
Colombia peso COP= | 4181.57 | 0.02 |
Peru sol PEN= | 3.733 | -0.36 |
Argentina peso (interbank) ARS=RASL | 971.5 | 0.05 |
Argentina peso (parallel) ARSB= | 1185 | 2.53 |
Reporting by Ankika Biswas in Bengaluru; Editing by Kirsten Donovan
면책조항: XM Group 회사는 체결 전용 서비스와 온라인 거래 플랫폼에 대한 접근을 제공하여, 개인이 웹사이트에서 또는 웹사이트를 통해 이용 가능한 콘텐츠를 보거나 사용할 수 있도록 허용합니다. 이에 대해 변경하거나 확장할 의도는 없습니다. 이러한 접근 및 사용에는 다음 사항이 항상 적용됩니다: (i) 이용 약관, (ii) 위험 경고, (iii) 완전 면책조항. 따라서, 이러한 콘텐츠는 일반적인 정보에 불과합니다. 특히, 온라인 거래 플랫폼의 콘텐츠는 금융 시장에서의 거래에 대한 권유나 제안이 아닙니다. 금융 시장에서의 거래는 자본에 상당한 위험을 수반합니다.
온라인 거래 플랫폼에 공개된 모든 자료는 교육/정보 목적으로만 제공되며, 금융, 투자세 또는 거래 조언 및 권고, 거래 가격 기록, 금융 상품 또는 원치 않는 금융 프로모션의 거래 제안 또는 권유를 포함하지 않으며, 포함해서도 안됩니다.
이 웹사이트에 포함된 모든 의견, 뉴스, 리서치, 분석, 가격, 기타 정보 또는 제3자 사이트에 대한 링크와 같이 XM이 준비하는 콘텐츠 뿐만 아니라, 제3자 콘텐츠는 일반 시장 논평으로서 "현재" 기준으로 제공되며, 투자 조언으로 여겨지지 않습니다. 모든 콘텐츠가 투자 리서치로 해석되는 경우, 투자 리서치의 독립성을 촉진하기 위해 고안된 법적 요건에 따라 콘텐츠가 의도되지 않았으며, 준비되지 않았다는 점을 인지하고 동의해야 합니다. 따라서, 관련 법률 및 규정에 따른 마케팅 커뮤니케이션이라고 간주됩니다. 여기에서 접근할 수 있는 앞서 언급한 정보에 대한 비독립 투자 리서치 및 위험 경고 알림을 읽고, 이해하시기 바랍니다.
