Most Latam FX down as firmer dollar, slipping commodity prices weigh
Updated at 10:31 a.m. ET/ 1431 GMT
Mexico's annual inflation eases further
Brazil consumer prices pick up in September
Latam FX down 0.6%, stocks off 1.1%
By Shashwat Chauhan
Oct 9 (Reuters) -Most Latin American currencies slipped on Wednesday, as a combination of a firmer dollar and falling prices of commodities such as iron ore and oil weighed, while investors awaited more cues on the Federal Reserve's policy path.
Commodities like base metals and iron ore slipped as an absence of further fiscal measures following China's outsized stimulus package last month disappointed investors.
China's finance ministry will detail plans on fiscal stimulus to boost the economy at a much-awaited news conference on Saturday.
Brazil's real BRL= eased 0.8% against the dollar. Consumer prices in Latin America's biggest economy accelerated in September from the previous month, reinforcing expectations of further interest rate hikes by the country's central bank.
Mexico's peso MXN= weakened 0.3% 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 figure is supportive for Banxico continuing with a gradual cutting rate cycle of 25-bp in each of the meetings during the rest of the year reaching a level of 10.00%," analysts at Citi wrote in a note.
Oil producer Colombia's peso COP= slipped 0.1% as crude oil prices fell more than 2%.
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 0.5% 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.
A blowout U.S. jobs report last week all but quashed hopes that the Fed could opt for another bumper rate cut this year, giving a leg up to the greenback.
MSCI's index for Latin American currencies .MILA00000CUS fell 0.6%, while stocks .MILA00000PUS shed 1.1%, with most local bourses in the red.
Elsewhere in emerging markets, Israel's shekel ILS= weakened 0.2% after the Bank of Israel kept interest rates unchanged for the sixth straight meeting.
HIGHLIGHTS
** Mexico, Brazil inflation reports send contrasting monetary policy messages
** Ecuador nature deal scrutiny has not slowed work on debt swaps, IDB says
** Mexican president: no plans to meet with Biden soon
Key Latin American stock indexes and currencies:
Equities | Latest | Daily % change |
MSCI Emerging Markets .MSCIEF | 1148.18 | -0.7 |
MSCI LatAm .MILA00000PUS | 2186.11 | -1.07 |
Brazil Bovespa .BVSP | 130044.04 | -1.12 |
Mexico IPC .MXX | 51985.34 | 0.43 |
Chile IPSA .SPIPSA | 6533.65 | 0.63 |
Argentina Merval .MERV | 1718241.56 | -0.758 |
Colombia COLCAP .COLCAP | 1301.21 | 0.09 |
Currencies | Latest | Daily % change |
Brazil real BRL= | 5.5767 | -0.76 |
Mexico peso MXN= | 19.3958 | -0.34 |
Chile peso CLP= | 935.9 | -0.45 |
Colombia peso COP= | 4227.56 | -0.1 |
Peru sol PEN= | 3.7197 | 0 |
Argentina peso (interbank) ARS=RASL | 975 | -0.05 |
Argentina peso (parallel) ARSB= | 1160 | 1.29 |
Reporting by Shashwat Chauhan 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.
