Most Latin American currencies on track for weekly drops on commodity weakness
Brazil's central bank to hold rates steady on July 31, poll says
Mining giant Vale says second-quarter net profit triples
Chile's central bank to keep key rate at 5.75%, poll says
Stocks up 0.4%, currencies down 0.3%
Updated at 3:40 p.m. ET/ 1940 GMT
By Johann M Cherian and Shashwat Chauhan
July 26 (Reuters) - Most currencies in Latin America were set for weekly losses on Friday on the back of price drops in commodities such as copper and iron ore, while global risk markets remained stable after data showed an improving U.S. inflation picture.
MSCI's index tracking currencies in the resource-rich region .MILA00000CUS slipped 0.3%, and was poised for a weekly drop of 1.9%, its steepest decline in more than seven weeks.
Brazil's real BRL= dipped 0.3%, but was set to end the week lower by over 1%, tracking a weekly decline in iron ore prices. [IRNORE/]
A Reuters poll showed economists expect the Brazilian central bankto leave interestrates unchanged fora second time in a row next week as a wave of currency instability deepens policymaker concerns over the trajectory of consumer prices.
Mexico's peso MXN= held steady at 18.45 per dollar, though it was headedfor a second consecutiveweeklydecline.
Chile's peso CLP= was flat at 949.39 per dollar. The country's centralbank is expected to hold its benchmark interest rate at 5.75% at its monetary policy meeting next week, a poll showed.
Bucking the trend, Colombia's peso COP= rose 0.3%, while Peru's sol PEN= also strengthened 0.8%.
Meanwhile, the dollar =USD was subdued after data showed moderate increases in the personal consumption expenditures price index in June, underscoring animproving inflation environment that could position the Federal Reserve to begin cutting interest rates in September.
"The Fed and the market are still getting what they need to keep the Fed on a path to a first cut to their policy rate in September and a 'soft landing' being the most likely economic outcome," said Greg Wilensky, head of U.S. fixed income at Janus Henderson Investors, referring to a scenario in which inflation is tamed without triggering a painful recession or sharp rise in unemployment.
An easing of U.S. interest rates is generally viewed as a positive for emerging markets, where interest rates are broadly higher, increasing the appeal for "carry trades."
On the equities front, Brazil's Bovespa index .BVSP added 1.3%, with Vale VALE3.SA rising 1.7% after the mining giant said its second-quarter net profit was triple that of theyear-earlier period, beating analyst estimates, as sales jumped.
Usiminas USIM5.SA tanked 23.2% after the steelmaker reported a loss in the second quarter and was operationally weaker than expected.
A broader index tracking regional bourses .MILA00000PUS was up 0.4%, though setfor its biggest weekly decline of about 3%.
Indexes in Mexico .MXX and Colombia .COLCAP fell 0.3% and 0.4%, respectively.
Attention this weekend willbe on presidential elections in oil-producing Venezuela.
HIGHLIGHTS
** Venezuela's bondholders hope pre-election recruitment drive will pay off
** Chile's Codelco says output falls 8% in first half of 2024
Key Latin American stock indexes and currencies:
Latest | Daily % change | |
MSCI Emerging Markets .MSCIEF | 1072.42 | -0.15 |
MSCI LatAm .MILA00000PUS | 2196.96 | 0.41 |
Brazil Bovespa .BVSP | 127554.78 | 1.27 |
Mexico IPC .MXX | 52772.99 | -0.3 |
Chile IPSA .SPIPSA | 6452.10 | 0.17 |
Argentina MerVal .MERV | 1536246.06 | -0.132 |
Colombia COLCAP .COLCAP | 1348.22 | -0.4 |
Currencies | Latest | Daily % change |
Brazil real BRBY | 5.6590 | -0.21 |
Mexico peso MXN=D2 | 18.4544 | -0.04 |
Chile peso CLP=CL | 951.5 | -0.23 |
Colombia peso COP= | 4025.11 | 0.32 |
Peru sol PEN=PE | 3.7215 | 0.61 |
Argentina peso (interbank) ARS=RASL | 928.5000 | 0.16 |
Argentina peso (parallel) ARSB= | 1415 | 2.12 |
Reporting by Johann M Cherian and Shashwat Chauhan in Bengaluru; Editing by Emelia Sithole-Matarise and Paul Simao
Aloqador aktivlar
Eng oxirgi yangiliklar
Javobgarlikdan voz kechish: XM Group korxonalari har biri faqat ijro xizmatlarini koʻrsatadi va onlayn savdo platformamizdan foydalanish huquqini beradi, bu odamga veb-saytda yoki veb-sayt orqali mavjud boʻlgan kontentni koʻrish va/yoki undan foydalanishga ruxsat beradi hamda uni oʻzgartirishga moʻljallanmagan va uni oʻzgartirmaydi yoki kengaytirmaydi. Bunday kirish va foydalanish huquqi doimo quyidagilarga boʻysunadi: (i) Shartlar va qoidalar; (ii) Risklar haqida ogohlantirish; va (iii) Javobgarlikni toʻliq rad etish. Shuning uchun bunday kontent umumiy maʼlumot sifatida taqdim etiladi. Xususan, shuni esda tutingki, bizning onlayn savdo platformamiz mazmuni moliyaviy bozorlarda biror bitimni amalga oshirishga oid maslahat yoki taklif emas. Har qanday moliyaviy bozorda savdo qilish sizning kapitalingiz uchun jiddiy risk darajasini oʻz ichiga oladi.
Onlayn savdo platformamizda chop etilgan barcha materiallar faqat taʼlim/axborot maqsadlari uchun moʻljallangan va unda moliyaviy, investitsiya soligʻi yoki savdo maslahatlari va tavsiyalar; yoki bizning savdo narxlarimizning qaydlari; yoki har qanday moliyaviy vositalar bilan bitim tuzish maslahati yoki taklifi; yoki sizga kerak boʻlmagan moliyaviy reklama aksiyalari hisoblanmaydi
Har qanday uchinchi tomon kontenti, shuningdek XM tomonidan tayyorlangan kontent, masalan: fikrlar, yangiliklar, tadqiqotlar, tahlillar, narxlar va boshqa maʼlumotlar yoki bu veb-saytda joylashgan uchinchi tomon saytlariga havolalar umumiy bozor sharhi sifatida "boricha" taqdim etiladi va investitsiya maslahatini tashkil etmaydi. Har qanday kontent investitsiya tadqiqoti sifatida talqin qilinsa, siz bunday kontentni investitsiya tadqiqotlarining mustaqilligini ragʻbatlantirish uchun moʻljallangan qonun talablariga muvofiq moʻljallanmagan va tayyorlanmaganligini eʼtiborga olishingiz va qabul qilishingiz kerak, shuning uchun unga tegishli qonunlar va qoidalarga muvofiq marketing kommunikatsiyasi sifatida qaraladi. Mustaqil boʻlmagan investitsiya tadqiqoti va yuqoridagi maʼlumotlarga oid risk haqida ogohlantirishimizni oʻqib chiqqaningizga va tushunganingizga ishonch hosil qiling, unga bu yerdan kirish mumkin.
