|Day's Range||39,435.67 - 39,842.95|
|52 Week Range||38,265.51 - 50,603.39|
Bucking the trend, Argentina's peso shed over 1% even as the new Treasury Minister Hernan Lacunza sought to calm investors by saying the country will stand by the 2019 fiscal targets agreed with the International Monetary Fund, and work to stabilize its currency. After a tumultuous week marked by worries about escalation in U.S.-China trade tension, recession worries and a slump in Argentina's assets, financial markets steadied as major economies including China and Germany unveiled plans to support growth. With the U.S. dollar slipping, the Brazilian real and the Mexican peso rose about 0.6% as investors focused on minutes from the U.S. Federal Reserve's July meeting and the central bankers' meeting at Jackson Hole later this week, where Fed chief Jerome Powell is set to speak.
Sao Paulo-listed stocks rose about 0.5%, tracking gains for global stock markets after China's central bank announced key interest rate reforms over the weekend, fueling expectations of an imminent reduction in corporate borrowing costs. The prospect for fiscal stimulus for Germany also helped the mood, with Mexican stocks jumping more than 1%, while the MSCI's index of emerging market stocks rose 0.8%. Financial markets are coming off a rough week, marked by worries about an escalation in the U.S.-China trade war, moves in the U.S. bond market pointing to recession on the horizon and turmoil in Argentine markets.
Stocks in the region, besides those in Argentina, gained between 2% and 0.4% as fiscal stimulus hopes from Germany and China to support growth, and rising possibility of an interest rate cut by the European Central Bank, lifted global sentiment plagued by recession worries. Meanwhile, the Argentine peso closed Friday up 4.4% in a second day of strong gains, lifted by the government's attempt to calm markets via relief measures and collaborations with opposition as well as central bank interventions.
MSCI's index of Latin American stocks rose 0.8% led by gains on Brazil's Bovespa. The index was still on track to lose close to 6% through a chaotic week as mounting worries of a global recession sparked in part by the long-drawn U.S.-China trade war, kept investors on the edge. The Argentine peso rose 1.8%, attempted a mild rebound from a near-twenty percent fall this week which came on the back of a surprise defeat for sitting President Mauricio Macri in the presidential primaries on Sunday.
The Argentine peso closed at 57.4 pesos per dollar on signs that the country's president and his main opposition rival were determined to control an economic crisis sparked by a shock primary-election result that wiped out around a quarter of the peso's value. Opposition presidential candidate Alberto Fernandez trounced center-right President Mauricio Macri in Sunday's vote, which raised fears of a return to protectionist policies if Fernandez were to win the October general elections. Win Thin, global head of emerging market currency strategy at Brown Brothers Harriman (BBH) pinned the strength in the peso to selling of dollar by some bank's after the central bank established a ceiling for foreign exchange holdings equivalent to 5% of a bank's net worth which is set to take effect on August 20.
The Mexican peso edged higher ahead of the central bank's decision on interest rates, due at 2:00 p.m. EDT (1800 GMT). "If they cut at this meeting, we would imagine it comes with language that tries to dissuade the market from positioning for a very deep cutting cycle, partly because Banxico wants to observe how MXN reacts to the easing." Latin American currencies and stocks lost steam on Wednesday amid a slump in global financial markets after moves in U.S. bonds signaled that the world's biggest economy will tip into recession in the wake of a prolonged trade dispute with China. The Argentine peso opened stronger after a three-day rout in the currency on investor worries about the country's return to populist policies after business friendly President Mauricio Macri fared worse than expected in this week's presidential primaries.
The country's main stocks index posted its worst day ever with all its components well in the red, while the cost of insuring exposure to Argentina's sovereign debt surged almost 1,000 basis points. Stumping expectations, opposition candidate Alberto Fernandez - whose running mate is former President Cristina Fernandez de Kirchner - dominated the primary on Sunday, significantly lessening Macri's chances of being re-elected in October. "What is unclear is exactly how Fernandez and Kirchner intend to conduct economic policy if they come to power," said Alejo Czerwonko emerging markets strategist at UBS Global Wealth Management's chief investment office.
Brazil's real firmed more than 1%, while Mexico's peso rose almost as much against a slightly firmer dollar. Colombia's peso surged 2.3% on coming back after a day's holiday, and was set for its best session in two months. Most regional stock markets also rose, between 0.1% and 2%, with those in Brazil and Mexico on course for their third straight day of gains.
Latin American assets staged a partial recovery on Tuesday after a global sell-off driven by a symbolic fall in the value of China's officially-controlled currency eased. Beijing stepped in to keep the yuan in control after its drop past a sacrosanct 7 to the dollar mark roiled financial markets on Monday with Washington calling its arch trade rival a currency manipulator. The White House said while it 'could not tolerate' the depreciation of the yuan, U.S. President Donald Trump was willing to continue trade talks with China and the Trump administration still plans to host a Chinese delegation for further talks in September.
(Bloomberg) -- Mexican stock investors are taking a particularly hard hit in Monday’s trade-triggered global equity rout, with the nation’s already beaten-down benchmark poised to break through a technical level that Monex’s top chartist says could presage an even deeper drop.The S&P/BMV IPC index sank as much as 1.8% in its fifth consecutive decline. The equity gauge, also known as the Mexbol, has slumped 13% from this year’s high in April. Cement maker Cemex SAB, which derives more than three-quarters of its sales from abroad, led declines in Mexico City as global markets were roiled after China escalated the trade war with the U.S.At the worst of it Monday, the Mexbol traded at its lowest intraday level since last November and was poised to close at its lowest in more than five-years.“The inertia is going to continue down,” said Monex’s senior technical analyst Juan Caudillo. If the Mexbol were to close below the November low, it could sink an additional 6% before finding support at around 37,000 points, he said.From a fundamental standpoint, Mexican equities could see further pressure on concerns about slowing growth in Mexico and the economic policies of President Andres Manuel Lopez Obrador. Bank of America Merrill Lynch said more companies so far have missed second-quarter earnings estimates than have beaten them, which could lead analysts to reduce their expectations even further.To contact the reporter on this story: Michael O'Boyle in Mexico City at firstname.lastname@example.orgTo contact the editors responsible for this story: Brad Olesen at email@example.com, Richard RichtmyerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
* Latin American stocks at two-month lows * CLP falls to 3-yr low on lower copper prices * Peru central bank meeting later this week Aug 5 (Reuters) - Latin American assets tumbled on Monday as escalation of U.S.-China trade tensions pushed investors to pile on to safe-heavens like government bonds and gold, while the yuan fell to its lowest levels in over a decade. The MSCI index of Latin American currencies fell over 1%, adding to a 2.3% slide through last week, its worst in 2019, after U.S. President Donald Trump announced a 10% tariff hike on the remaining $300 billion worth of Chinese imports. Chile's peso which tracks copper prices fell to an over three-year low as the yuan's slide made it expensive for the world's biggest copper consumer, China to buy dollar-denominated metals.
* Petrobras posts its highest-ever quarterly profit * Latin American currencies suffer worst day in 2019 * Brazil's real weakens to lowest level in six weeks (Updates prices, adds analyst comment) By Sruthi Shankar Aug 2 (Reuters) - Brazil's real hit a six-week low on Friday, leading losses among Latin American currencies as an escalation in U.S.-China trade tensions turned investors risk-averse, although upbeat production numbers from oil firm Petrobras lifted Sao Paulo- listed shares. The MSCI index of Latin American currencies extended its slide for a second day and was on course to post its worst week of 2019 after U.S. President Donald Trump on Thursday vowed to hike tariffs on Chinese imports starting on Sept. 1, prompting retaliation from Beijing.
* Latam FX on track to post worst day since late-March * Emerging-market stocks on worst run in almost a year * Fed cuts rates by 25 basis points, further cuts uncertain By Agamoni Ghosh Aug 1 (Reuters) - Latin American currencies were on track to post their worst day in nearly five months on Thursday as investors scurried from riskier assets and piled on to the safe-heaven U.S. dollar after the U.S. Federal Reserve dampened hopes for a long interest rate-cutting campaign. The U.S. central bank's policy-setting Federal Open Market Committee (FOMC) cut rates as expected on Wednesday but Fed Chairman Jerome Powell said the move might not be the start of a lengthy campaign to shore up the economy against risks, disappointing investors who hoped for a more dovish stance.
In a statement at the end of its two-day policy meeting, the Fed said it had decided to cut rates by 25 basis points "in light of the implications of global developments for the economic outlook as well as muted inflation pressures." However, Powell's comments that Wednesday's rate cut was different from the start of a lengthy series of rate cuts quashed expectations the U.S. central bank will embark on an easing cycle. Latin American currencies declined, in-line with their emerging market peers.
Latin American currencies rose on Wednesday as investors awaited an interest rate cut from the U.S. and Brazilian central banks, while stocks fell as the latest round of U.S.-China trade talks concluded without any major breakthrough. The U.S. Federal Reserve will conclude its two-day policy meeting later in the day, and is widely expected to lower interest rates by 25 basis points. If implemented, it would be the central bank's first rate cut in a decade.
White House economic adviser Larry Kudlow said on Tuesday it was a good sign that top U.S. officials would travel to China to discuss reviving stalled trade talks. MSCI's index of Latin American stocks and currencies rose with Brazilian assets gaining after the government's latest move to cut worker protections and boost job creation. Brazil's Presidential Chief of Staff Onyx Lorenzoni said that workers will now be able to withdraw up to 500 reais ($132.00) from their FGTS - a severance fund designed for employees to prevent firms from firing them.