25 Nov 2019
Nov 25 Assets in emerging markets strengthened
slightly on Monday after a report said the United States and
China were 'very close' to a phase one deal, while South
Africa's rand firmed on the back of a sovereign rating reprieve.
21 Nov 2019
* Brazil stocks outshine Latam equities
* Mexican, Colombian peso gain on higher oil prices
(Updates prices; adds quote, news items)
By Medha Singh and Agamoni Ghosh
Nov 21 Most Latin American stocks slipped on
Thursday while currencies were mixed as clashing headlines
related to a trade deal between United States and China subdued
risk appetite.
Mexican stocks slipped 1% while equities in Chile
, Colombia, Argentina were all down
between 0.1% and 0.7%.
Worries that an initial trade deal between United States and
China could slide into next year, as well as political tensions
between the two sides because the U.S. Congress passed
legislation backing protesters in Hong Kong, soured the mood.
"These headlines are just all noise mostly," said Christian
Lawrence, senior market strategist at Rabobank who doesn't think
that a trade deal will come through this year.
However, a report suggesting the United States could delay
tariffs even if a deal was not reached by Dec. 15 kept losses in
check.
Bucking the trend, Brazilian stocks rose 0.7%
following a market holiday, lifted by shares of the heavyweight
Petrobras.
Magazine Luiza SA slipped marginally while and
Lojas Marisa SA rose about 3% after the Brazilian
retailers announced a partnership to sell smartphones and
financial services in roughly 300 stores of apparel retailer
Marisa.
Among currencies, the crude exporters Mexico and
Colombia's peso strengthened on the back of higher oil
prices after a report that OPEC and its allies were likely to
extend output cuts.
Brazil's real slipped 0.3%, in a tepid response to
President Jair Bolsonaro launching a new political party, the
Alliance for Brazil (APB), under the banner of fighting graft
and advancing Christian values.
The region's currency index has fallen about
5% since its October peak bogged down worries over drawn out
anti-government protests in Chile and an unsuccessful oil
auction in Brazil.
Credit Suisse strategists reiterated 'overweight'
recommendations for emerging market equities on Thursday, citing
that they have become very cheap with concerns over China's
slowdown, trade war and strengthening dollar.
Latin American stock indexes and currencies at 1530 GMT:
Stock Latest daily % change
indexes
MSCI Emerging Markets 1043.95 -0.77
MSCI LatAm 2665.51 0.14
Brazil Bovespa 106733.13 0.82
Mexico IPC 43198.91 -0.93
Chile IPSA 4754.36 -0.66
Argentina MerVal 33362.76 -0.175
Colombia COL 1590.62 -0.62
Currencies Latest daily % change
Brazil real 4.2069 -0.21
Mexico peso 19.4123 0.23
Chile peso 794.8 -0.62
Colombia peso 3416.9 0.71
Peru sol 3.372 0.30
Argentina peso (interbank) 59.7900 -0.10
(Reporting by Sagarika Jaisinghani in Bengaluru; Editing by
Bernadette Baum and Grant McCool)
21 Nov 2019
* China says will strive to reach trade agreement
* Sino-U.S. trade deal could slide into 2020 - report
* Brazil real, Colombian peso trading flat
* Mexican peso gains on higher oil prices
By Sagarika Jaisinghani and Agamoni Ghosh
Nov 21 Latin American currencies were little
changed on Thursday as conflicting news on trade and a
diplomatic row between the United States and China kept
investors away from riskier assets, while Brazil stocks were
lifted by upbeat corporate reports.
The Brazilian real was trading flat, while the
Peruvian Sol and Colombian peso firmed just 0.2%
against a slightly weaker dollar.
China said on Thursday it would strive to reach a trade
agreement with the United States, in an attempt to allay fears
that negotiations might be unraveling after a report on
Wednesday said the deal could slide into next year.
U.S. legislation protecting human rights in Hong Kong has
also drawn China's criticism and exacerbated concerns about a
delay in the resolution to the Sino-U.S. tariff dispute that has
dented global growth and dulled business sentiment.
"EM assets seem to be struggling today on those concerns
about trade and we think they will continue to tread water over
the next couple of months on added concerns of a global
slowdown," said Jason Tuvey, senior economist at Capital
Economics in London.
Global stocks retreated from 22-month highs scaled in recent
weeks on strengthening hopes of an agreement, which U.S.
President Donald Trump said last month could be signed by
mid-November.
The Mexican peso was an outlier among its regional
peers, gaining 0.5% and tracking oil prices higher as a report
said OPEC and its allies would likely extend output cuts until
mid-2020.
Still, currencies in Latin America are on track to post
their first monthly decline in three on unsuccessful oil
auctions in Brazil and prolonged anti-government protests in
Chile.
The Chilean peso eased again on Thursday after losing
more than 2% this week, staying on course for its fifth weekly
decline in a row. The country's stock index was down
0.3%.
Shares in Brazil, the biggest economy in Latin
America, rose 0.2% after a market holiday on Wednesday.
The stock index was boosted by industry heavyweight
Petrobras, which said late on Tuesday it would sell
its LPG distributor, Liquigas, to Copagaz and National Gas
Butano for 3.7 billion reais (about $880 million).
Shares in Mexico, Argentina, Colombia
and Peru were all trending lower.
Key Latin American stock indexes and currencies at 1530 GMT:
Stock indexes Latest Daily % change
MSCI Emerging Markets 1042.61 -0.89
MSCI LatAm 2652.23 -0.36
Brazil Bovespa 106098.84 0.22
Mexico IPC 43333.47 -0.62
Chile SPIPSA 4771.75 -0.3
Argentina MerVal 33187.74 -0.698
Colombia Colcap 1595.25 -0.33
Currencies Latest Daily % change
Brazil real 4.2119 -0.33
Mexico peso 19.4249 0.17
Chile peso 796.91 -0.88
Colombia peso 3442.71 -0.05
Peru sol 3.3778 0.12
Argentina peso (interbank) 59.7400 -0.02
($1 = 4.1934 reais)
(Reporting by Sagarika Jaisinghani in Bengaluru; Editing by
Bernadette Baum)
20 Nov 2019
European shares logged their worst day in three weeks on Wednesday on mounting worries that rising U.S.-China tensions could take a toll on trade negotiations between the two countries.
19 Nov 2019
European stocks reversed course to close lower in a choppy session on Tuesday as lack of clarity on the progress of trade talks between Washington and Beijing kept investors from making bold bets.
18 Nov 2019
(Updates prices; adds quote, news items)
* Brazil's real hits record low
* Beijing 'pessimistic' on trade deal -CNBC report
* Argentina, Mexico stock markets shut for holiday
By Medha Singh and Agamoni Ghosh
Nov 18 Latin American currencies started the
week with declines as conflicting headlines surrounding
U.S.-China trade talks kept investors on the sidelines, while
Brazil's real closed at an all-time low.
MSCI's index for Latin American currencies
slipped 0.3%, resuming its downward trend as it fell for the
tenth time in the last eleven sessions.
Sentiment took a hit earlier in the day after CNBC reported
that the mood in Beijing was "pessimistic" because of U.S.
President Donald Trump's reluctance to roll back tariffs.
However, the Trump administration issued a new 90-day
extension that allowed U.S. companies to continue doing business
with China's Huawei Technologies Co Ltd , which tempered
the initial losses.
"This week, we are going to be range-bound but that range
will be decided by the trade headlines," said Christian
Lawrence, senior market strategist at Rabobank.
A slide in oil prices also weighed on currencies of net
crude exporters such as Mexico and Colombia's peso
.
REAL CURRENCY AT LIFE LOW
Brazil's real reversed course to drop marginally as
traders pushed the currency through the key level where the
central bank had intervened in August by selling dollars on the
spot market.
"Looking at the fundamentals, the real at 4.20 per U.S.
dollar, does not seem to justify its level," said Wilson
Ferrarezi, Brazil economist at TS Lombard.
"This could indicate the currency is oversold, especially
because important reforms like the pension reform have already
been approved by the Congress."
The currency has dropped about 8% this year as the economy
sluggishly recovers from a deep recession and struggles to cope
with a mounting fiscal deficit.
Stocks in Sao Paulo were marginally lower as
investors returned from a long weekend. Among prominent movers,
Marfrig Global Foods SA rose 5% after the food
processor announced it raised its stake in U.S. meatpacker
National Beef Packing Company to 81.7% from 51%.
The Chilean peso fell slightly as a drop in copper
prices hit the currency of the world's biggest producer of the
red metal.
The peso had jumped about 4% in the prior session as
lawmakers on Friday agreed to hold a referendum to overhaul the
country's dictatorship-era constitution.
Chile's stocks pared back slightly after posting
their best one-day percentage jump in 11 years in the previous
session.
Trading was subdued on Monday as stock markets in Mexico and
Argentina were shut for holidays.
Key Latin American stock indexes and currencies at 2010 GMT:
Stock indexes daily % change
Latest
MSCI Emerging Markets 1051.32 0.24
MSCI LatAm 2675.09 -0.54
Brazil Bovespa 106480.95 -0.07
Mexico IPC - -
Chile IPSA 4814.17 -0.97
Argentina MerVal - -
Colombia IGBC 0.00 0
Currencies daily % change
Latest
Brazil real 4.2054 -0.24
Mexico peso 19.3022 -0.65
Chile peso 775.53 -0.46
Colombia peso 3439.5 -0.47
Peru sol 3.372 -0.27
Argentina peso (interbank) - -
(Reporting by Medha Singh and Agamoni Ghosh in Bengaluru)
18 Nov 2019
European stocks ended flat on Monday as a spurt of defensive buying over uncertainty surrounding U.S.-China trade talks helped temper losses in the auto sector.
15 Nov 2019
European shares clocked a sixth-straight week of gains on Friday following record highs on Wall Street after bullish comments from a White House official on U.S.-China trade talks.
14 Nov 2019
European shares closed lower on Thursday as a warning from German carmaker Daimler and weak economic data from major economies added to concerns about a global slowdown.