U.S. Markets closed
  • S&P 500

    3,811.15
    -18.19 (-0.48%)
     
  • Dow 30

    30,932.37
    -469.64 (-1.50%)
     
  • Nasdaq

    13,192.35
    +72.92 (+0.56%)
     
  • Russell 2000

    2,201.05
    +0.88 (+0.04%)
     
  • Crude Oil

    61.66
    -1.87 (-2.94%)
     
  • Gold

    1,733.00
    -42.40 (-2.39%)
     
  • Silver

    26.70
    -0.98 (-3.56%)
     
  • EUR/USD

    1.2088
    -0.0099 (-0.8099%)
     
  • 10-Yr Bond

    1.4600
    -0.0580 (-3.82%)
     
  • Vix

    27.95
    -0.94 (-3.25%)
     
  • GBP/USD

    1.3921
    -0.0091 (-0.6529%)
     
  • USD/JPY

    106.5500
    +0.3200 (+0.3012%)
     
  • BTC-USD

    47,595.40
    +705.15 (+1.50%)
     
  • CMC Crypto 200

    912.88
    -20.25 (-2.17%)
     
  • FTSE 100

    6,483.43
    -168.53 (-2.53%)
     
  • Nikkei 225

    28,966.01
    -1,202.26 (-3.99%)
     

EMERGING MARKETS-Latam FX firm against weaker dollar; Stocks track Wall Street higher

Susan Mathew
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

By Susan Mathew Sept 9 (Reuters) - Latin American currencies firmed on Wednesday after a sharp sell-off in the previous session, with Mexico's peso looking to post its biggest one-day gain in two weeks as the dollar slipped. Stocks in the region rose as Wall Street recovered from a technology stocks related rout. Brazil's Bovespa led gains, up 0.9%, while Colombia's COCLAP was set for its best session in a week. MSCI's index of Latam stocks jumped 1.8% Sentiment, however, remained fragile after AstraZeneca paused the trial of its most promising COVID-19 vaccine after an unexplained illness in a study participant. Mexico's peso rose 0.9% after data showed consumer price inflation in August rose to 4.05%, above the central bank's target of 3%. Mexico's central bank has cut its benchmark lending rate by 375 basis points since August last year to 4.5%, and has a one percentage point tolerance band above or below that figure. "The data might reinforce Bank of Mexico's increasingly cautious stance, but we still expect further monetary easing, including a 25 basis point cut at its meeting later this month," said William Jackson, chief emerging markets economist at Capital Economics. Similar data from Brazil showed inflation hit its highest in four years last month, although the pace slowed from July and overall inflation remained well below the central bank's goal. Analysts say the key interest rate will stay at its record low level till at least until 2022. The real currency rose more than 1% attempting to erase Tuesday's losses. A Vontobel Asset Management survey of 300 institutional investors and discretionary wealth managers showed that a majority of investors are planning to increase their emerging markets exposure over the next five years, even as concerns over the impact of the COVID-19 pandemic are limiting the short-term flow of investments to those economies. As oil prices rose, crude exporter Colombia's currency broke a four-session losing run, while Chile's peso tracked a rise in copper prices. Key Latin American stock indexes and currencies at 1409 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1085.15 -0.22 MSCI LatAm 1998.68 1.71 Brazil Bovespa 100949.45 0.9 Mexico IPC 36281.24 0.58 Chile IPSA 3829.45 0.09 Argentina MerVal - - Colombia COLCAP 1239.88 0.61 Currencies Latest Daily % change Brazil real 5.3025 1.18 Mexico peso 21.5869 0.80 Chile peso 765.5 0.89 Colombia peso 3714.2 0.61 Peru sol 3.5198 0.59 Argentina peso 74.7600 -0.07 (interbank) (Reporting by Susan Mathew and graphic by Aaron Saldanha in Bengaluru;)