Mexico rises among Latam bourses after inflation slows in Aug
Updated at 1425 GMT
Brazil studies raising taxes without lawmaker approval
Mexico's contested judicial reform moves to full Senate vote
US may get involved in Argentina dispute over YPF judgment
Latam stocks up 0.6%, FX slips 0.08%
By Johann M Cherian
Sept 9 (Reuters) -Mexican equities were among top performers in Latin American equities on Monday, after signs of moderating price pressures raised hopes for interest rate cuts, while most regional currencies dipped against a firmer U.S. dollar.
Mexico's main equities index .MXX rose 0.9% after data showed headline inflation in the region's second-largest economy eased to 4.99% in August, boosting expectations that Banxico will lower borrowing costs when it meets later this month.
The oil exporter's peso MXN= appreciated 0.7% tracking higher crude prices, and rebounded from losses logged in the previous three weeks. Still, the currency was not far from a more than one-year low.
"We expect the downtrend to continue at the headline level in coming months, but politics are now a key threat," said Andrés Abadía, chief Latam economist at Pantheon Macroeconomics.
A highly contested proposal on judicial reform that critics say will hurt Mexico's business climate edged closer to approval when senators late on Sunday backed it at the commission stage.
"Approval of the (constitutional) reforms could complicate the United States-Mexico-Canada treaty's six-year joint review in 2026," Abadía added.
Meanwhile, Brazil's real BRL= slipped 0.2% ahead of an inflation report due later in the week. Uncertainty regarding the local central bank's monetary policy path prevailed after data last week hinted at stronger-than-expected economic performance.
Soothing some worries about fiscal instability, sources said the government is considering tax hikes that do not require congressional approval to balance this year's budget.
Colombia's peso COP= dipped 0.3% as hopes for an upcoming interest rate cut were boosted by data that showed consumer prices rose 6.12% in August, less than expectations of a 6.35% rise.
Currencies of copper producers Chile CLP= and Peru PEN= were little changed.
MSCI's index tracking Latin American currencies .MILA00000CUS weakened 0.08% against a firmer greenback, as investors scaled back expectations for an outsized 50-basis-point rate cut by the Federal Reserve ahead of a U.S. inflation report later in the week.
On the equities front an index .MILA00000PUS tracking regional bourses added 0.6%, with Brazil's Bovespa .BVSP rising 0.4% aided by a rise in energy stocks.
Argentina's MerVal index .MERV climbed 1.3%, with YPF YPFDm.BA edging up 0.4% after the U.S. government said it may get involved in a dispute over whether Argentina should give up its 51% stake in the oil and gas company to help satisfy a $16.1 billion court judgment.
Key Latin American stock indexes and currencies:
Latin American market prices from Reuters | ||
Equities | Latest | Daily % change |
MSCI Emerging Markets .MSCIEF | 1063.81 | -1.03 |
MSCI LatAm .MILA00000PUS | 2206.89 | 0.68 |
Brazil Bovespa .BVSP | 135119.19 | 0.41 |
Mexico IPC .MXX | 51535.38 | 0.88 |
Chile IPSA .SPIPSA | 6263.84 | 0.29 |
Argentina Merval .MERV | 1748490.07 | 1.558 |
Colombia COLCAP .COLCAP | 1326.13 | -0.18 |
Currencies | Latest | Daily % change |
Brazil real BRL= | 5.609 | -0.18 |
Mexico peso MXN= | 19.8402 | 0.64 |
Chile peso CLP= | 944.85 | -0.13 |
Colombia peso COP= | 4194.07 | -0.39 |
Peru sol PEN= | 3.794 | -0.26 |
Argentina peso (interbank) ARS=RASL | 957 | -0.052246604 |
Argentina peso (parallel) ARSB= | 1240 | 1.612903226 |
Annual change in Mexico’s consumer prices https://reut.rs/3XDQyW7
Reporting by Johann M Cherian in Bengaluru
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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.
