|Day's Range||5,041.52 - 5,072.83|
|52 Week Range||4,798.35 - 5,515.95|
The U.S. Federal Reserve and the European Central Bank both held on rates and said they were likely to do so in the near term. Emerging markets, which have largely mimicked the Fed's easing cycle this year, have found support from major central banks adopting an accommodative stance in the face of an economically damaging trade war between the United States and China.
Analysts say markets have priced in what is expected to be the final rate cut in Brazil interest rates, to a record low 4.5%, as economic indicators show improvement. "We expect unchanged interest rates next year," said You-Na Park-Heger, an analyst with Commerzbank. "Should the central bank leave the door open for interest rate cuts, this should weigh on the BRL." Wednesday's cut would be the bank's fourth this year.
* MSCI Latam stocks, currency indexes at over 1-mth highs * Brazil cut priced in, tightening cycle seen in 2020- Analyst * Higher metal prices support Chilean assets By Ambar Warrick Dec 11 (Reuters) - Brazilian assets firmed on Wednesday on expectations the country's central bank will cut the benchmark Selic interest rate to a record low 4.5%, while Latin American stocks hit the highest in more than a month on hopes for U.S.-China trade talks. "Until we see some confirmation, I think we'll see people getting a bit more nervous as that deadline nears," said William Jackson, chief emerging markets economist at Capital Economics in London. Brazil stocks rose while the real rose against the dollar to its strongest level in more than a month.
A revision of new North American Free Trade Agreement, called USMCA which was initially struck last year, adds more stringent oversight of the pact's labor provisions. Mexico's IPC index rose 1.4%, while the peso traded flat against a weaker dollar, after five straight sessions of gains.
* Brazil stocks down after four sessions of record highs * Brazil central bank cut largely expected on Wednesday * Chilean peso down as poll sees Q4 GDP contraction By Ambar Warrick Dec 10 (Reuters) - Brazilian stocks dipped on Tuesday while broader Latin American assets were subdued following a report of a possible delay to further U.S. tariff action on China. A Wall Street Journal report said that U.S. and Chinese trade negotiators were discussing a delay on a round of tariffs set to kick in on Dec. 15. Brazilian stocks ticked lower after marking a new record high over the past four sessions, while the MSCI's indexes of Latin American stocks and currencies were largely flat.
In Argentina, the battered peso was stable, while bond prices rose and country risk spreads tightened, showing the market took President-elect Alberto Fernandez's cabinet picks - featuring debt restructuring expert Martin Guzman as economy minister - in stride. Argentine markets had been on edge since Fernandez thumped President Mauricio Macri in the August primary election as it signaled a shift away from Macri's pro-business policy stance.
* MSCI Latam stocks, currency indexes retain last-week's gains * Dec. 15 U.S.-China tariffs to delay likely EM recovery -analysts * Metal prices rise as strength in Chinese imports implies demand * Chilean peso up for fifth straight day after C.bank stimulus By Ambar Warrick Dec 9 (Reuters) - Latin American markets held around a month's high on Monday, building slightly on gains made last week as the focus turned to the upcoming deadline on further U.S. tariff action against China. Lower-than-expected export data from China served to remind investors of the economic slowdown bought about by the Sino-U.S. trade war, although markets have so far held out hope for an interim deal before the Dec. 15 deadline. "If the December 15 tariffs on China go ahead, then our view is going to come under more significant pressure, with the anticipated EM growth recovery pushed from Q1 2020 to Q3 2020," Morgan Stanley analysts wrote in a note.
Cuts to the U.S. benchmark borrowing rate have lent support to emerging market currencies this year. Against a strong dollar, Chile's peso rallied 0.7% and logged its best week in more than eight years as the country's central bank tried to prop up the currency which fell to a record low last week after anti-government riots. Brazil's real firmed 1% to its highest level in almost one month, as consumer price inflation bounced back to seven-month highs in November.
* Latam stocks, currencies set for best week since late-Oct * Brazil stocks propped up by resources play * Chilean peso eyes best week since Sept-2018 By Ambar Warrick Dec 6 (Reuters) - Latin American stocks rose on Friday amid continued optimism over Sino-U.S. trade talks, while regional currencies continued to benefit from sustained weakness in the dollar. U.S. President Donald Trump on Thursday said trade talks are "moving right along," even as Beijing maintained its stance that some existing tariffs must come off as part of an interim agreement. The MSCI's index of Latin American stocks was set for an eighth straight day of gains, pushed up by heavyweight Brazilian stocks.
* Petrobras rises 2%, says may divest billions more than forecast * Chile stocks, peso rise; central bank holds benchmark rate * Argentine c. Stocks took support from lingering optimism over the Sino-U.S. trade war, after a Bloomberg report as well as positive comments from U.S. President Donald Trump brewed some hope over a "phase-one" trade deal. Regional markets have also been propped up by some positive economic readings this week, with better-than-expected GDP data from Brazil, Latin America's largest economy, being the most notable.
* MSCI's Latam stock index at highest since Nov 12 * Chile stocks, peso surge as C.bank holds benchmark rate * Argentine stocks down as C.bank chief resigns By Ambar Warrick Dec 5 (Reuters) - Latin American stocks touched a more than three-week high on Thursday, with Brazilian stocks at a record peak as the country's senate approved a military pension reform bill. Stocks took support from lingering optimism over the Sino-U.S. trade war, after a Bloomberg report as well as positive comments from U.S. President Donald Trump brewed some hope over a "phase-one" trade deal. Regional markets have also been propped up by some positive economic readings this week, with better-than-expected GDP data from Brazil, Latin America's largest economy, being the most notable.
* Brazil stocks up as much as 0.8% * Chilean assets rise ahead of C.bank decision, rate cut likely * Chile rate cut to be close call- Analyst * Mexican, Colombian pesos up on strong oil prices By Ambar Warrick Dec 4 (Reuters) - Latin American stock markets rose on Wednesday as U.S. President Donald Trump voiced more optimism than he did a day earlier about trade talks with China, and Brazilian equities mounted a record high, with an investment manager telling a Reuters forum the country was his top regional investment pick. Trump said that trade talks with China were going "very well." On Tuesday, he had flagged a possible delay in reaching a deal. A basket of Latin American stocks rose to a more than one-week high, pushed up mainly by a jump in Brazilian equities.
* Trump to restore tariffs on metal imports from Brazil, Argentina * Latam FX gain as dollar drops after weak U.S. manufacturing data * Brazil stocks rise after strong manufacturing data * Chilean peso firms as central bank intervention kicks in By Susan Mathew Dec 2 (Reuters) - A dollar weakened by poor U.S. economic data helped Latin American currencies brush off the re-imposition of U.S. tariffs on steel and aluminum imports from Brazil and Argentina on Monday. Brazil's real firmed 0.4% with a spot auction by the central bank supporting the currency, while the Argentine and Mexican pesos were flat against a dollar that slid on weak U.S. manufacturing data. Surprising officials in the two South American countries, U.S. President Donald Trump said on Monday he would restore tariffs on U.S. steel and aluminum imports, accusing them of devaluing their currencies to the detriment of U.S. farmers.
* Brazil's real slips after current account gap widens * Mexican peso eases after weak GDP data * Chilean peso breaks 5-day losing streak * U.S.-China trade rhetoric improves (Updates prices; adds quotes) By Medha Singh Nov 25 (Reuters) - Brazil's real weakened on Monday after data showed the current account deficit in Latin America's largest economy widened in October, while a report showing the Mexican economy was in a mild recession in the first half of 2019 pressured the peso. The slipped against a firmer dollar as central bank data indicated the current account deficit widened more than expected, to $7.9 billion as the trade surplus shrank. "The number was a little bit of a surprise," said Luiz Ribeiro, head of Latin American equities at DWS Group.
* U.S.-China trade deal "potentially very close" - Trump * Latam FX drops against a strong dollar * Trade deal hopes bolster stocks (Updates prices; adds quote, news items) By Medha Singh Nov 22 (Reuters) - Latin American stocks advanced on Friday as positive comments from Washington and Beijing eased investor concerns at the end of a week mired by conflicting headlines on a trade deal. U.S. President Donald Trump said a trade deal with China is "potentially very close", adding to earlier optimism after Beijing had said it wanted to work out an initial agreement with Washington. MSCI's index of Latin American stocks rose 0.6%, set to wrap up a week marked by conflicting messages surround a trade deal, marginally higher.
* U.S.-China trade jitters weigh on sentiment * Mexican peso, Peruvian sol dip * Brazil real firms after five day slide to record low (Updates prices, adds news items) By Medha Singh and Shreyashi Sanyal Nov 19 (Reuters) - Most Latin American currencies were lower on Tuesday as lack of clarity on U.S.-China trade developments kept investors on the sidelines but Brazil's real bounced off all time lows. The real firmed about 0.5% after the currency crossed a key mark at 4.20 to the dollar to hit a record low in the previous session when there was no central bank intervention. Central bank chief Roberto Campos Neto said on Tuesday the exchange rate was not fueling inflation or inflation expectations, indicating policymakers were relatively relaxed and that intervention was not imminent.
(Bloomberg) -- Chilean stocks and the peso rallied the most in a decade on optimism an agreement over a new constitution will help end protests and riots that threatened to upend the country’s economy.The benchmark stock index closed with a gain of 8.1%, while the peso added 3.3%, both posting the world’s best performances on Friday. Bond spreads narrowed and the cost to insure against default dropped.It was the first sign of significant relief for Chilean assets after they came under pressure a month ago following the government’s move to raise subway fares. The deadly and violent upheaval that followed -- unprecedented in a country seen as an oasis of stability in the region -- sent the currency tumbling to a record low, hammered stocks and briefly cost Chile its title as Latin America’s safest borrower.Bleary-eyed lawmakers announced an agreement over a mechanism to rewrite the constitution at about 2:30 a.m. Friday, following another day of demonstrations and arson attacks. While protesters have a long list of social-justice grievances, replacing a constitution that was penned during the dictatorship of Augusto Pinochet was a key demand.“We don’t know if this will put an end to all the protests, but it will certainly help,” said Rodrigo Rojas, who manages $500 million at Toesca Asset Management. “The agreement improves visibility for the market versus what we had just 24 hours ago.”Leading the WayThe protests may cost as many as 300,000 jobs, saw almost one in three supermarkets vandalized and led to 20 deaths. The police appeared to lose control of the streets at times.The breakdown in social cohesion was a surprising turn of events for a country that, at least in financial circles, was considered the best house on a bad block, heading toward developed-nation status after years of fiscal prudence and relative stability fueled economic growth.But the nightly images of destruction over the past month brought the IPSA stocks index down to 13 times estimated earnings, the lowest since early 2016. Inversiones La Construccion SA, with interests in pension funds and healthcare, two industries in the cross-hairs of protesters, was one of the best performers Friday, rising 26%. Builders Salfacorp SA and Besalco SA also leaped.Swap rates in pesos plunged. By Thursday, the market had priced out almost any further monetary policy easing as the peso rout continued. In a sharp about-face today, the two-year swap fell 23 basis points, while five-year and 10-year swap rates dropped the most in at least a decade.Of course the social turmoil in Chile didn’t happen in isolation. Populist governments have been elected in Mexico, Brazil and Argentina. Venezuela is basically a failed state. Peru’s president recently dissolved Congress after his predecessor was ousted amid corruption allegations. And in Bolivia, enraged supporters of former President Evo Morales are clashing with police as his replacement tries to establish order.In Chile, there’s broad popular support for reform -- almost three-fourths of those surveyed late last month said protests should continue.Under Friday’s accord, Chile will hold a referendum in April on whether to have a new constitution and which body would be in charge of drafting it. One option will be a newly elected Constituent Convention, the other a mix between the Congress and a Convention.Key ClauseKey to today’s market rally is a line saying that all clauses must be approved by a two-third majority. That could potentially make it easier to avoid radical change. What has worried analysts is the potential for the economic and social model that has supported 30 years of outperformance in Chile relative to its emerging-market peers may be scrapped.“Consensus on content will be needed,” Fernan Gonzalez, an analyst at Banchile, said in a note. “Equities should re-rate after the agreement and the sell-off,“ he said, naming Banco Santander Chile, Cencosud Shopping SA, Empresas CMPC SA, Enel Chile SA as its top picks.Chile is well positioned to shift toward higher taxes and increased spending. After racking up huge budget surpluses during the commodities boom, the nation can afford to spend a few more points of gross domestic product on health and pensions. The government spends about 25% of GDP, compared to 38% in Brazil and Argentina.Still, the Chile of the future will likely have a higher tax burden, higher fiscal spending and possibly more debt to satisfy protesters’ demands for bigger pensions, better health care and less economic inequality.“This isn’t free,” said Sebastian Ide, head of trading at Banco de Chile in Santiago. “To think that asset prices will just go back to where they were is blindness. This peace will help with consumer spending, but for growth you need investment. Investment won’t come until we know where we are with the constitution and fiscal spending.”(Updates with closing market prices.)\--With assistance from James Attwood.To contact the reporters on this story: Eduardo Thomson in Santiago at email@example.com;Sebastian Boyd in Santiago at firstname.lastname@example.orgTo contact the editors responsible for this story: Daniel Cancel at email@example.com, Philip Sanders, Brendan WalshFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
* Chile's peso continues slide as unrest continues * U.S.-China trade talks hit snag over farm purchases - WSJ * Fed chief Powell sees continued U.S. growth (Updates prices; changes quote) By Medha Singh Nov 13 (Reuters) - Latin American currencies slipped for the eighth straight session on Wednesday as lack of clarity on the U.S.-China trade deal sapped risk appetite, while Chile's peso remained at all-time lows as anti-government protests showed no signs of subsiding. MSCI's index of Latin American currencies hit its lowest level in one and a half months as the dollar held steady after Federal Reserve Chair Jerome Powell offered an optimistic outlook for the U.S. economy.
* Chilean peso falls as much as 800 against the dollar * Most Latam currencies fall as dollar firms * Planemaker Embraer hits one-month low after results * Mexican central bank meeting on Thursday (Updates prices; adds news items) By Medha Singh Nov 12 (Reuters) - Chile's peso plunged to a record low on Tuesday as massive anti-government protests showed little signs of abating, while Latin American stocks tumbled, led by losses in Brazil as some corporate earnings disappointed. Chile's currency has tumbled about 10% in nearly a month as the South American country reels from protests over inequality and social injustice that has wreaked billions of dollars of damage to public infrastructure and private businesses. MSCI's index tracking Latin American currencies fell for a seventh straight session.
Brazil's real rose 0.3% to just below 4 per dollar. The currency was on track to post a second straight week of gains, boosted by optimism over the Brazilian Senate's final approval of a pension reform bill and the central bank hinting at a pause on further interest rate cuts. "Progress on the reform agenda should continue removing risk premium from Brazilian assets," Claudio Irigoyen at Bank of America Merrill Lynch wrote in a client note.