Latin American stocks, currencies slide on Trump jitters, China woes
Updated at 1541 GMT
Brazil's inflation up more than expected in October
Petrobras posts 22% increase in quarterly profit
Argentina's YPF beats expectations on Q3 profit
Colombian government eyes further 2024 budget cuts
MSCI Latin American stocks index up 2.8%, FX up 1.6%
By Johann M Cherian
Nov 8 (Reuters) -Currencies and stocks across resource-rich Latin American economies dropped on Friday, as uncertainty around a second Trump administration in the U.S., disappointment over a China stimulus package and domestic economic woes hurt risk-taking.
MSCI's index tracking Latin American stocks .MILA00000PUS slid 2.8% while a currencies index .MILA00000CUS lost 1.6% as the dollar rebounded from a brief pause spurred by the Federal Reserve's 25-basis-point interest rate cut in the previous session.
Despite severe market volatility on Wednesday following Republican former President Donald Trump's election victory, the indexes were set for weekly gains, with analysts saying that much of the risk was priced ahead of the U.S. election.
The MSCI stocks index has lost more than 20% so far this year, while the currencies index is down more than 7% during the same period.
Mexico's peso MXN= depreciated 1.4% on Friday, hovering at 20 against the greenback, while Mexican equities .MXX dropped 1.4% as investors were on edge for further clues on Trump's policies, much of which could be detrimental to Latin America's second-largest economy.
"The big difference from last time is that he's bringing a team of more professional people willing to be loyal to him and it appears that he's won the Senate and is likely to win the (House of Representatives," said Eduardo Ordonez Bueso, an emerging markets debt portfolio manager at BankInvest.
"It seems he will have a lot of tools that he didn't have before, so one could argue maybe this time it will be easier to do (the things he promised)."
Brazil's real BRL= weakened 1.4% as investors assessed data that showed consumer prices in the region's largest economy rose more than expected in October, days after the central bank raised interest rates.
The real has lost nearly 16% so far this year despite recent rate hikes on worries of fiscal instability. Markets are now pricing in a 75-basis-point rate hike at the central bank's meeting next month.
Colombia's peso COP= slipped 1.1%, tracking a drop in crude prices. The Colombian government is looking at making additional cuts to its 2024 budget amid fiscal difficulties in the oil-producing nation, two government sources close said.
The currencies of copper producing nations Chile CLP= and Peru PEN= weakened 1.8% and 0.5%, respectively, tracking weaker copper prices, as investors were unimpressed by the extent of fiscal stimulus measures announced by top metals consumer China.
On the equities front, the Bovespa index .BVSP fell 1.6% to a three-month low, with shares of mining giant Vale VALE3.SA slumping on the back of lower copper and iron ore prices.
Shares of Petrobras PETR4.SA rose 0.7% after the oil firm reported an increase in its third-quarter net profit and announced $3 billion in dividends.
Argentina's MerVal index .MERV lost 1%, although YPF .YPFDm.BA gained 1.3% after beating expectations on its third-quarter net profit, boosted by increases in output and prices of oil and natural gas.
Key Latin American stock indexes and currencies:
Latin American market prices from Reuters | ||
Equities | Latest | Daily % change |
MSCI Emerging Markets .MSCIEF | 1134.7 | -0.51 |
MSCI LatAm .MILA00000PUS | 2111.39 | -2.77 |
Brazil Bovespa .BVSP | 127619.35 | -1.59 |
Mexico IPC .MXX | 51594.3 | -1.37 |
Chile IPSA .SPIPSA | 6501.43 | -0.92 |
Argentina Merval .MERV | 1994703.01 | -1.035 |
Colombia COLCAP .COLCAP | 1354.37 | -0.34 |
Currencies | Latest | Daily % change |
Brazil real BRL= | 5.7745 | -1.44 |
Mexico peso MXN= | 20.0739 | -1.41 |
Chile peso CLP= | 965.9 | -1.8 |
Colombia peso COP= | 4349.27 | -1.13 |
Peru sol PEN= | 3.7708 | -0.55 |
Argentina peso (interbank) ARS=RASL | 993.5 | 0.05 |
Argentina peso (parallel) ARSB= | 1100 | 1.79 |
Reporting by Johann M Cherian in Bengaluru; Editing by 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.
