Most Latam currencies edge up tracking higher commodity prices
IMF raises Latin American growth forecast for 2024
Latam Airlines upgrades earnings outlook
MSCI's Latam FX index up 0.1%, stocks down 0.1%
Updated at 1852 GMT
By Shashwat Chauhan, Pranav Kashyap and Johann M Cherian
Oct 22 (Reuters) -Most currencies in resources-rich Latin America rose on Tuesday, with Chile's peso in the lead as prices of crude oil and copper, some of the region's top exports, rose, while focus was also on the U.S. presidential elections in two weeks.
Copper producer Chile's peso CLP= firmed 0.6% as prices of the red metal rose, while Peru's sol PEN= appreciated 0.4% in light volumes. MET/L
Crude oil producer Mexico's peso MXN= ticked up 0.2% after falling for the last two session, while Colombia's peso COP= added 0.3% as crude oil prices rose more than 2%. O/R
Mexico's peso has depreciated nearly 15% since June as markets priced in Banxico's upcoming interest rate cuts, possible repercussions to trade following domestic judicial reforms and due to greater prediction market bets for a second Donald Trump presidency in the U.S - who has proposed a 200% tariff on vehicles imported from Mexico.
Separately, Mexico's economy shrank 0.3% in August from July and expanded 0.4% from August of 2023, official data showed.
"The boost from falling inflation and a still-healthy labour market has prevented a grimmer outlook thus far. Looking ahead, we believe the economy will grow at a slower pace in Q4, and downside risks are increasing due to rising real rates and a challenging external backdrop," said Andres Abadia, chief Latam economist at Pantheon Macroeconomics.
Bucking the trend was Brazil's real BRL=, which slipped 0.1%, to 5.7 per dollar, with MSCI's index for currencies in the region .MILA00000CUS up 0.16% against the greenback.
The dollar has stayed elevated at a two-and-a-half month high as Trump's proposed policies on taxes and tariffs are seen as inflationary, likely keeping U.S. interest rates high and undermining the currencies of trading partners.
Meanwhile, The International Monetary Fund said GDP in Latin America and the Caribbean was set to grow 2.1% this year, three-tenths of a percentage point more than projected in July.
The body raised its 2024 growth forecast for Brazil to 3%, up from 2.1% in July, and Mexico's forecast to expand 1.5%, seven-tenths of a percentage point less than previously estimated.
ButArgentina is projected to contract this year, with a 3.5% decline, more than double its 1.6% drop in 2023.
On the equities front, a gauge for regional bourses .MILA00000PUS dipped 0.1%.
Brazil's Bovespa .BVSP and Mexico's benchmark index .MXX lost 0.4% and 0.8% respectivley.
Chile's main index .SPIPSA was flat, with Latam Airlines LTM.SN up 1.3%, after the carrier upgraded its guidance for 2024 earnings and passenger growth.
Key Latin American stock indexes and currencies:
Latin American market prices from Reuters | ||
Equities | Latest | Daily % change |
MSCI Emerging Markets .MSCIEF | 1142.07 | -0.55 |
MSCI LatAm .MILA00000PUS | 2166.45 | -0.14 |
Brazil Bovespa .BVSP | 129883.17 | -0.37 |
Mexico IPC .MXX | 52391.08 | -0.8 |
Chile IPSA .SPIPSA | 6667.12 | -0.06 |
Argentina Merval .MERV | 1809491.82 | -0.616 |
Colombia COLCAP .COLCAP | 1349.2 | -0.53 |
Currencies | Latest | Daily % change |
Brazil real BRL= | 5.7028 | -0.16 |
Mexico peso MXN= | 19.9162 | 0.25 |
Chile peso CLP= | 947.65 | 0.55 |
Colombia peso COP= | 4258.52 | 0.27 |
Peru sol PEN= | 3.75 | 0.4 |
Argentina peso (interbank) ARS=RASL | 983.5 | 0.00 |
Argentina peso (parallel) ARSB= | 1225 | 1.22 |
Reporting by Pranav Kashyap, Shashwat Chauhan and Johann M Cherian in Bengaluru, editing by Ed Osmond and Alistair Bell
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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.
