Latam FX steadies as focus shifts to US election
Updated at 1512 GMT
Copper prices weigh on currencies of Chile and Peru
Poll suggests Brazil's economy will grow at steady pace
Mexican economy grows 1.6% on an annual basis in May
Latam stocks up 0.1%, FX off 0.1%
By Johann M Cherian
July 22 (Reuters) -Brazil and Mexico's currencies led gains in Latin America on Monday, rebounding from the previous week's sell-off, as investors assessed the implications of U.S. President Joe Biden's decision not to seek re-election.
Brazil's real BRL= appreciated 1%, after logging its steepest weekly loss since November 2022 on Friday. A poll showed the region's biggest economy will continue growing at a steady pace over the medium term thanks to a continuous rise in public spending that is set to keep fiscal deficits uncomfortably high.
Mexico's peso MSN= recovered 0.9% after notching its biggest weekly drop since early June in the previous session. Data showed the region's second-largest economy grew 1.6% in May on an annual basis, compared with a revised 5.3% growth seen the month before.
Global shares also nudged higher after Biden's decision to bow out of the election race and endorse Vice President Kamala Harris injected a degree of optimism into the markets. MKTS/GLOB
Biden's rival, Republican candidate Donald Trump is seen as a negative for Latin American economies, most of which are led by left-leaning governments. Mexico is considered to be particularly exposed, given the former U.S. President's policies on trade, immigration and security.
On Friday, MSCI's index tracking Latin American currencies .MILA00000CUS logged its biggest weekly drop since early June after an assassination attempt on Trump boosted expectations that he might win a second term at the White House.
"Over the last week, people were just too excited pricing what they called the 'Trump trade' and now people are reacting to the news of Biden stepping down from the race and Kamala taking over," said Eduardo Ordonez Bueso, an emerging markets debt portfolio manager at BankInvest.
Meanwhile, currencies of copper producers Chile CLP= and Peru PEN= slipped 0.1% and 0.2% respectively as prices of the red metal slipped. MET/L
Attention will also be on a Group of 20 Finance Ministers and Central Bank Governors meeting in Brazil later in the week.
On the equities front, an index tracking regional bourses .MILA00000PUS was subdued, while Brazil's Bovespa .BVSP edged up 0.2%
Markets were on the cusp of corporate earnings season in Brazil, with the release of reports from Carrefour CRFB3.SA due after the closing bell, while those from Santander SANB11.SA and Vale VALE3.SA were also on tap.
Mexico's main index .MXX climbed 0.4%, while Colombia's Colcap .COLCAP dipped 0.1%.
Key Latin American stock indexes and currencies:
Latin American market prices from Reuters | ||
Stock indexes | Latest | Daily % change |
MSCI Emerging Markets .MSCIEF | 1085.53 | -0.37 |
MSCI LatAm .MILA00000PUS | 2261.47 | 0.15 |
Brazil Bovespa .BVSP | 128022.43 | 0.32 |
Mexico IPC .MXX | 53892.65 | 0.4 |
Chile IPSA .SPIPSA | 6576.57 | 0.27 |
Argentina MerVal .MERV | 1575425.11 | 0.408 |
Colombia COLCAP .COLCAP | 1365.82 | -0.14 |
Currencies | Latest | Daily % change |
Brazil real BRBY | 5.5559 | 0.86 |
Mexico peso MXN=D2 | 17.8880 | 0.82 |
Chile peso CLP=CL | 950.9 | -0.42 |
Colombia peso COP= | 4001.52 | 0.87 |
Peru sol PEN=PE | 3.7368 | 0.00 |
Argentina peso (interbank) ARS=RASL | 926.0000 | -0.11 |
Argentina peso (parallel) ARSB= | 1420 | 1.76 |
Reporting by Johann M Cherian in Bengaluru
Editing by Christina Fincher
Ativos relacionados
Últimas notícias
Isenção de Responsabilidade: As entidades do XM Group proporcionam serviço de apenas-execução e acesso à nossa plataforma online de negociação, permitindo a visualização e/ou uso do conteúdo disponível no website ou através deste, o que não se destina a alterar ou a expandir o supracitado. Tal acesso e uso estão sempre sujeitos a: (i) Termos e Condições; (ii) Avisos de Risco; e (iii) Termos de Responsabilidade. Este, é desta forma, fornecido como informação generalizada. Particularmente, por favor esteja ciente que os conteúdos da nossa plataforma online de negociação não constituem solicitação ou oferta para iniciar qualquer transação nos mercados financeiros. Negociar em qualquer mercado financeiro envolve um nível de risco significativo de perda do capital.
Todo o material publicado na nossa plataforma de negociação online tem apenas objetivos educacionais/informativos e não contém — e não deve ser considerado conter — conselhos e recomendações financeiras, de negociação ou fiscalidade de investimentos, registo de preços de negociação, oferta e solicitação de transação em qualquer instrumento financeiro ou promoção financeira não solicitada direcionadas a si.
Qual conteúdo obtido por uma terceira parte, assim como o conteúdo preparado pela XM, tais como, opiniões, pesquisa, análises, preços, outra informação ou links para websites de terceiras partes contidos neste website são prestados "no estado em que se encontram", como um comentário de mercado generalizado e não constitui conselho de investimento. Na medida em que qualquer conteúdo é construído como pesquisa de investimento, deve considerar e aceitar que este não tem como objetivo e nem foi preparado de acordo com os requisitos legais concebidos para promover a independência da pesquisa de investimento, desta forma, deve ser considerado material de marketing sob as leis e regulações relevantes. Por favor, certifique-se que leu e compreendeu a nossa Notificação sobre Pesquisa de Investimento não-independente e o Aviso de Risco, relativos à informação supracitada, os quais podem ser acedidos aqui.