Latam FX, stocks cling to gains after Fed rate cut
U.S. Fed cuts by 25 bps
Mexican President Sheinbaum has cordial first call with Trump
Economists see higher peak for Brazil's rates
Argentina's Milei to meet with Trump next week in US
MSCI's Latam stocks index up 0.8%, FX up 1.1%
Updated at 2:44 p.m. ET
By Ankika Biswas and Johann M Cherian
Nov 7 (Reuters) -Most Latin American currencies and stocks logged strong gains against a weak dollar on Thursday, as investor sentiment improved with the Federal Reserve's latest interest-rate cut, while Mexico's peso hit a two-week high.
MSCI's Latam currencies index .MILA00000CUS rose 1.1% to an over three-week high. The dollar =USD weakened after Wednesday's biggest one-day jump in over two years as investors closed out profitable bets following Donald Trump's presidential victory, with bets of a Fed rate cut also weighing.
"Latin American central banks typically aim to follow the Fed's monetary policy to avoid negative impact on currency markets. Lower U.S. interest rates are likely to facilitate a smoother path for rate reductions in Latam," said Eduardo Moutinho, market analyst at financial technology firm Ebury.
The U.S. central bank delivered a widely expected 25-basis-point cut, as policymakers acknowledged an easing job market and improving inflation trend.
However, traders have trimmed their bets of future rate cuts on consistently robust economic data and after accounting for chances of higher inflation stemming from Trump's proposed tariffs and government spending.
Mexico's peso MXN= appreciated 1.1% to 19.86 against the dollar, while local stocks .MXX also gained nearly 0.9% to an over two-week high.
The peso had hit more than two-year lows of 20.8 and the stocks index hit a one-year low on Wednesday after Trump's comeback sparkedfears that he could follow through on campaign rhetoric around trade and immigration barriers that would hurt the Mexican economy.
The peso ended Wednesday's choppy session flat, with some analysts pointing to investors having already priced in Trump's win. The currency had lost nearly 21% from April highs in the run-up to Nov. 5.
"We remain optimistic about the peso. Mexico stands out as a strong currency in the region, and the peso's future will partly depend on whether Trump can effectively implement proposed tariffs," Moutinho added.
Further, Mexican President Claudia Sheinbaum spoke with Trump this morning, describing the telephone call as "very cordial".
Colombia's peso COP= was the top gainer among its regional peers, up 2.5% to a two-week high, tracking an over 1% jump in crude oil prices.
Top copper producer Chile's peso COP= and Peru's sol PEN= climbed 1.2% and 0.7%, respectively, boosted by an over 3% jump in prices of the red metal.
While Peru's interest-rate decision is due later in the day, a Reuters poll showed Chile is expected to cut rates by 25 bps in December.
On the flip side, Brazil's real was largely flat, a day after Copom hiked interest rates by 50 basis points and left the door open for further increases.
In contrast to the monetary policy easing by other Latam central banks, Brazil's recent rate hike prompted economists to raise their projections for borrowing costs at the end of its tightening cycle.
Meanwhile, Argentina's libertarian President Javier Milei, a political ally of Trump, will meet with U.S. president-elect next week in the United States.
The country's main stocks index .MERV climbed nearly 2%, hitting a fresh record high, with the MSCI Latam stocks gauge .MILA00000PUS rising 0.8%.
Key Latin American stock indexes and currencies:
Equities | Latest | Daily % change |
MSCI Emerging Markets .MSCIEF | 1142.12 | 0.91 |
MSCI LatAm .MILA00000PUS | 2163.82 | 0.78 |
Brazil Bovespa .BVSP | 129720.18 | -0.48 |
Mexico IPC .MXX | 52177.02 | 0.86 |
Chile IPSA .SPIPSA | 6562.93 | -0.25 |
Argentina Merval .MERV | 2014963.18 | 1.94 |
Colombia COLCAP .COLCAP | 1354.21 | -0.74 |
Currencies | Latest | Daily % change |
Brazil real BRL= | 5.682 | -0.05 |
Mexico peso MXN= | 19.863 | 1.1 |
Chile peso CLP= | 948.8 | 1.2 |
Colombia peso COP= | 4300.86 | 2.52 |
Peru sol PEN= | 3.75 | 0.69 |
Argentina peso (interbank) ARS=RASL | 993.5 | -0.05 |
Argentina peso (parallel) ARSB= | 1100 | 3.18 |
Reporting by Johann M Cherian and Ankika Biswas in Bengaluru; Editing by Barbara Lewis and Lisa Shumaker
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.
