|Day's Range||30,614.96 - 31,475.70|
|52 Week Range||22,484.40 - 44,470.76|
The Mexican peso, vulnerable to trade risks due to its reliance on U.S. economy, jumped 0.7% to 19.31 per dollar, while the Chilean and the Colombian pesos rallied about 0.8%, getting extra boost from a rally in metal and oil prices. The rally came as U.S. President Donald Trump said U.S.-China trade talks were going well as the second day of top-level negotiations got under way. Investors are hoping the two sides will agree to a deal that could avert further retaliatory measures, while expectations of a last-minute Brexit deal between the European Union and Britain as well as approval of a North American trade deal all added to the optimism.
Brazil's Bovespa jumped 0.8%, while an index of emerging market stocks rose 0.5% after U.S. President Donald Trump confirmed he would meet Chinese Vice Premier Liu He on Friday for further trade talks. Washington has threatened further tariffs on $250 billion worth of Chinese goods on Oct. 15. "It needs to be seen if this initiative allows China and the U.S. to reach an agreement allowing a postponement of further tariffs or even a reduction of already implemented tariffs," Morgan Stanley analysts wrote in a note.
MSCI's index of Latin American currencies fell 0.4% with Brazil's real hovering at two-week lows. The real was on course to lose nearly 2%, in part after Brazil's central bank cut its interest rate to a record low on Wednesday and signaled room for further easing. Currencies in the region have been hit by geopolitical worries this week following attacks on Saudi Arabia's key oil facilities, while the U.S. Federal Reserve's mixed signals about further interest rate cuts dampened the appetite for risky assets.
With the U.S. dollar broadly strengthening after the release of the Fed's policy statement, the Brazilian real led losses among the regional currencies with a 0.7% decline ahead of a rate decision from Brazil's central bank. New projections also showed policymakers at the median expected rates to stay within the new range through 2020, driving investors to cut bets on further U.S. rate cuts.
Oil prices surged nearly 20% at one point on Monday after the attack in Saudi Arabia, the world's biggest oil exporter, halved the kingdom's production. Trump also said the United States was "locked and loaded" for a potential response to the strikes, and that Iran appeared responsible, however, raising tensions. While currencies of some oil-exporters benefit from the steep rise in oil prices, concerns that an oil supply shock and geopolitical tensions would damage an already fragile global economy sapped investor demand for riskier assets.
MSCI's index of Latin American stocks rose 1.3%, holding near a one-month high, mirroring gains across global stock markets.
BUENOS AIRES/MADRID (Reuters) - Argentina's likely next President, opposition front-runner Alberto Fernandez, laid out his populist credentials during a visit to Madrid on Thursday, saying local Argentine interests would trump those of creditors and energy investors. In comments that followed a speech at the Spanish parliament, he indicated he would, if elected, take a tougher stance on international access to Argentina's vast Vaca Muerta shale reserves, a magnet for investment. Fernandez, a moderate Peronist running alongside populist ex-leader Cristina Fernandez de Kirchner, added he was committed to meeting debt obligations as long as it did not harm Argentines.
BUENOS AIRES/MADRID, Sept 5 (Reuters) - Argentina's likely next president, opposition front-runner Alberto Fernandez, laid out his populist credentials during a visit to Madrid on Thursday, saying local Argentine interests would trump those of creditors and energy investors. In comments that followed a speech in the Spanish parliament, he indicated that, if elected, he would take a tougher stance on international access to Argentina's vast Vaca Muerta shale reserves, a magnet for investment. Fernandez, a moderate Peronist running alongside populist ex-leader Cristina Fernandez de Kirchner, added he was committed to meeting debt obligations as long as it did not harm Argentines.
MSCI's index of Latin American currencies came off their one-year lows to move 0,8% higher as weak manufacturing data in the U.S. put the greenback on the back foot. Brazil's real and Mexico's peso led gains, each up nearly 1%, getting an additional boost from higher oil prices. Chile's peso was only marginally higher, underperforming its regional peers after the central bank cut its key interest rate by 50bps on Tuesday as inflation levels continue to drag for the world's top copper exporter.
The peso opened sharply stronger, up 6% officially against the dollar, marking Wall Street's first reaction to Argentina's new currency controls after a long holiday weekend in the United States. "The black market rate is lower then the official suggesting that there is still some pressures there," said Edward Glossop, Latam economist at Capital Economics. "History suggests that capital controls do sometimes help to alleviate pressure on currencies in the near term, but over the longer term when people start finding loopholes in the system.
Argentina's peso surged on Tuesday, pumped up by Wall Street traders cheering President Mauricio Macri's capital controls that are aimed at protecting the beleaguered currency. The peso closed 5.39% higher at 55.98 per U.S. dollar, traders said, its strongest level in a week after a near record low close on Friday. Traders said the central bank intervened to support the peso in the afternoon by selling dollars from its reserves.
The Brazilian real edged up 0.15%, struggling to recover from its lowest level this year despite data showing Brazil's economy rebounded strongly in the second quarter after having shrunk in the first, meaning Latin America's largest economy comfortably avoided falling back into recession. The currencies of Colombia and Mexico were largely flat as the dollar firmed against a basket of major currencies after data showed the strongest growth in U.S. consumer spending in 4-1/2 years even as economic growth slowed in the second quarter. In response, Argentina's peso fell 2.6% to 59.65 per dollar and bond prices headed to a record low, while its country risk soared to levels not seen since 2005.
Standard & Poors announced on Thursday that it was slashing Argentina's long-term credit rating another three notches into the deepest area of junk debt, saying the government's plan to "unilaterally" extend maturities had triggered a brief default. The ratings agency said it would consider Argentina's long-term foreign and local currency issue ratings as CCC- "vulnerable to nonpayment" - starting on Friday following the government's Wednesday announcement that it wants to "re-profile" some $100 billion in debt. The plan, which requires congressional approval, has stoked fears of a full-blown financial crisis in Latin America's third largest economy, two months before business-friendly President Mauricio Macri's handling of the economy is tested in a general election against a leftist rival.