Bovespa hits two-month low among Latam stocks after inflation data
Latam, Caribbean growth to slow in 2024, says World Bank
Mexico's annual inflation eases further, fueling rate-cut bets
Latam FX down 0.9%, stocks off 1.3%
Updated at 1849 GMT
By Shashwat Chauhan and Johann M Cherian
Oct 9 (Reuters) -Brazil led declines across most Latin American equities on Wednesday after data pointed to local price pressures picking up, while currencies in the region also took a hit tracking lower commodity prices.
The Bovespa .BVSP slid 1.3% to levels seen two months ago after consumer prices in the region's biggest economy rose 4.42% in September, closing in on the upper limit of the central bank's target range.
The stocks indexhas fallen over 5% from its record high hit in late August, as investors priced in further interest rate hikes by the Copom to battle signs of resurgence in inflation.
The yield on 2-year bonds BR2YT=RR ticked up 9 basis points, but the real BRL= depreciated 1% to touch a two-week low as iron ore prices slipped.
Mexico's peso MXN= weakened 0.6%, while the local stock index .MXX rose 0.5% after data showed the country's 12-month headline inflation rate fell again in September, raising expectations that the central bank will continue to cut its benchmark interest rate.
"The September CPI print, alongside the weakness in the economy and the fact that the Fed is now easing monetary policy too, support our view that Banxico will cut rates by 25 bps at each of the remaining meetings this year, taking the policy rate to 10.00% by December," said Jason Tuvey, deputy chief emerging markets economist at Capital Economics.
MSCI's index tracking Latin American currencies .MILA00000CUS dropped 0.9% to a two-week low, with oil producer Colombia's peso COP= off 0.1% as crude oil prices fell more than 1%.
Late on Tuesday, Colombia's National Electoral Council requested an investigation into the 2022 election campaign of President Gustavo Petro over alleged violation of financing limits.
Colombia's dollar-denominated bonds were slightly lower across the board.
Slipping copper prices weighed on Chile's peso CLP=, with the currency of the world's biggest producer of the red metal down 0.1% against the dollar.
The dollar firmed globally ahead of the release of minutes from the Fed's September policy meeting later in the day. A consumer price index reading due on Thursday.
MSCI's index tracking regional bourses .MILA00000PUS shed 1.3%, to a near one-month low, although Argentina's MerVal index .MERV and Chilean stocks .SPIPSA added 2% and 0.8%, respectively.
Peruvian equities .SPBLPGPT dropped 1.4% to a two-month low. The country's state-run Fiscal Council said that the current management of public finances had led to an "uncontrolled" increase in the fiscal deficit to well above the official rule.
Elsewhere, the World Bank said growth in Latin America and the Caribbean is expected to weaken to 1.9% this year from 2.1% in 2023 before accelerating again in 2025.
Key Latin American stock indexes and currencies:
Latin American market prices from Reuters | ||
Equities | Latest | Daily % change |
MSCI Emerging Markets .MSCIEF | 1147.84 | -0.73 |
MSCI LatAm .MILA00000PUS | 2178.81 | -1.40 |
Brazil Bovespa .BVSP | 129834.15 | -1.28 |
Mexico IPC .MXX | 51983.04 | 0.42 |
Chile IPSA .SPIPSA | 6541.23 | 0.75 |
Argentina Merval .MERV | 1764658.67 | 1.923 |
Colombia COLCAP .COLCAP | 1305.12 | 0.39 |
Currencies | Latest | Daily % change |
Brazil real BRL= | 5.5965 | -1.11 |
Mexico peso MXN= | 19.4747 | -0.74 |
Chile peso CLP= | 932.5 | -0.09 |
Colombia peso COP= | 4231.86 | -0.21 |
Peru sol PEN= | 3.7197 | 0 |
Argentina peso (interbank) ARS=RASL | 974.5 | 0.00 |
Argentina peso (parallel) ARSB= | 1155 | 1.73 |
Reporting by Shashwat Chauhan and Johann M Cherian in Bengaluru; editing by Jonathan Oatis
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Penafian: Entiti XM Group menyediakan perkhidmatan pelaksanaan sahaja dan akses ke Kemudahan Dagangan Atas Talian, yang membolehkan sesorang melihat dan/atau menggunakan kandungan yang ada di dalam atau melalui laman web, tidak bertujuan untuk mengubah atau memperluas, juga tidak mengubah atau mengembangkannya. Akses dan penggunaan tersebut tertakluk kepada: (i) Terma dan Syarat; (ii) Amaran Risiko; dan Penafian Penuh. Oleh itu, kandungan sedemikian disediakan tidak lebih dari sekadar maklumat umum. Terutamanya, perlu diketahui bahawa kandungan Kemudahan Dagangan Atas Talian bukan permintaan, atau tawaran untuk melakukan transaksi dalam pasaran kewangan. Berdagang dalam mana-mana pasaran kewangan melibatkan tahap risiko yang besar terhadap modal anda.
Semua bahan yang diterbitkan di Kemudahan Dagangan Atas Talian kami bertujuan hanya untuk tujuan pendidikan/maklumat dan tidak mengandungi – dan tidak boleh dianggap mengandungi nasihat kewangan, cukai pelaburan atau dagangan dan cadangan, atau rekod harga dagangan kami, atau tawaran, atau permintaan untuk suatu transaksi dalam sebarang instrumen kewangan atau promosi kewangan yang tidak diminta kepada anda.
Sebarang kandungan pihak ketiga serta kandungan yang disediakan oleh XM, seperti pendapat, berita, penyelidikan, analisis, harga, maklumat lain atau pautan ke laman web pihak ketiga yang terdapat dalam laman web ini disediakan berdasarkan "seadanya" sebagai ulasan pasaran umum dan bukanlah nasihat pelaburan. Sesuai dengan apa-apa kandungan yang ditafsir sebagai penyelidikan pelaburan, anda mestilah ambil perhatian dan menerima bahawa kandungan tersebut tidak bertujuan dan tidak sediakan berdasarkan keperluan undang-undang yang direka untuk mempromosikan penyelidikan pelaburan bebas dan oleh itu, ia dianggap sebagai komunikasi pemasaran di bawah peraturan dan undang-undang yang berkaitan. SIla pastikan bahawa anda telah membaca dan memahami Notifikasi mengenai Penyelidikan Pelaburan Bukan Bebas dan Amaran Risiko mengenai maklumat di atas yang boleh diakses di sini.
