U.S. markets open in 8 hours 25 minutes
  • S&P Futures

    -57.00 (-1.31%)
  • Dow Futures

    -375.00 (-1.10%)
  • Nasdaq Futures

    -228.50 (-1.61%)
  • Russell 2000 Futures

    -34.90 (-1.77%)
  • Crude Oil

    -0.71 (-0.81%)
  • Gold

    -17.70 (-0.97%)
  • Silver

    -0.55 (-2.30%)

    -0.0024 (-0.21%)
  • 10-Yr Bond

    0.0000 (0.00%)
  • Vix

    +0.80 (+2.57%)

    -0.0030 (-0.22%)

    +0.0140 (+0.01%)

    -1,673.11 (-4.44%)
  • CMC Crypto 200

    -36.47 (-4.26%)
  • FTSE 100

    +98.32 (+1.33%)
  • Nikkei 225

    -796.67 (-2.95%)

EMERGING MARKETS-Brazil's real leads Latam FX lower as inflation worries persist

·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • ^MXX
  • ITUB

* Brazil inflation jumps to 1.60% in October * Insurer BB Seguridade down as profit drops * Lender Itau Unibanco receives approval to buy stake in XP Inc By Shashank Nayar Nov 8 (Reuters) - Brazil's real dropped on Monday as investors fretted that rising inflation will warrant larger interest rate hikes and dampen the pace of economic recovery, while elections that are just weeks away were seen mapping the course for Argentine and Chilean assets. Brazil's real fell about 0.9%, on track to erase Friday's gains, after data showed inflation as measured by the IGP-DI price index rose 1.60% in October, compared with a 0.55% gain in September. "These figures imply lower inflationary pressures coming from food components in the very short-term, but higher pressures coming from oil-related prices and in the medium and long term, higher iron ore prices should pressure industrial components for longer," analysts at Citi wrote in a note. The central bank has hiked by an aggressive 575 basis points so far this year in its battle against inflation, with more expected to come, and analysts warn this could choke economic growth. Sao Paulo-listed stocks dropped as much as 0.6%, led by a 2% fall in insurer BB Seguridade after its profits dropped 11% from a year earlier, affected by a five-percentage-point rise in taxes levied on the net profit of insurers in the country. Lender Itau Unibanco said it had received central bank approval to buy an 11.38% stake in brokerage XP Inc. But its shares slipped, along with other banks. The currency of the world's top copper exporter, Chile firmed 0.3% after its central bank said revenues from copper exports amounted to $4.481 billion in October, up 23% versus a year earlier, helped by high global prices. As pollsters go into a legal blackout period two weeks before the Nov. 21 election, Chile's right-wing presidential front-runner, Jose Antonio Kast, has retained his grip on first place in pre-election opinion polls, ahead of leftist Gabriel Boric. As copper prices rose, world's second biggest copper producer Peru's sol firmed around 0.2%. Other Latam currencies, including the Mexican and Argentine pesos, fell with eyes on inflation data this week. Similar data from the United States is also being watched and could reactivate speculation about the next monetary policy steps by the Federal Reserve. Mexico and Peru's central banks are expected to raise rates this week to stave off inflation. The International Monetary Fund last week highlighted the risks from rising inflation in Mexico. In Argentina, ruling Peronists are likely to suffer a major blow in midterm legislative elections, polls ahead of the Nov. 14 vote show. Key Latin American stock indexes and currencies at 1416 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1267.59 0.28 MSCI LatAm 2153.58 -0.04 Brazil Bovespa 104818.46 -0.01 Mexico IPC - - Chile IPSA 4424.83 0.83 Argentina MerVal - - Colombia COLCAP 1388.56 -0.26 Currencies Latest Daily % change Brazil real 5.5605 -0.70 Mexico peso 20.3651 -0.24 Chile peso 807.9 0.48 Colombia peso 3871.03 -0.03 Peru sol 4.0043 -0.05 Argentina peso 100.0300 -0.08 (interbank) (Reporting by Shashank Nayar in Bengaluru; editing by Jonathan Oatis)