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Shreyashi Sanyal

FTSE 100 jumps as pound falls on doubts over Brexit trade deal

4:59pm GMT

The exporter-laden FTSE 100 index jumped on Wednesday as the sterling weakened on doubts of whether a trade deal could be reached by Britain and the European Union, while the UK's approval of a COVID-19 vaccine also supported sentiment.

EMERGING MARKETS-Latam assets rise on upbeat Chinese data, vaccine hopes

01 Dec 2020

* Brazil's real adds to gains after strong November * Latam stocks at highest level since early March * Mexican manufacturing PMI improves slightly * Chilean economy closer to growth after months of contraction (Updates prices throughout, adds comments) By Ambar Warrick and Shreyashi Sanyal Dec 1 Brazil's real led gains across Latin America on Tuesday, as most other stocks and currencies in the region rose after positive Chinese data and progress on COVID-19 vaccines drove buying into risk-driven assets. The real added 1.9%, even as the pace of expansion in the country's manufacturing sector slowed in November from record levels the prior month. But the reading was comfortably in expansion territory, indicating that economic activity in Latin America's largest economy was on the uptrend. Most other regional currencies rose, with the MSCI's index of Latam currencies adding more than 2% after positive Chinese factory data and hopes of regulatory approval for COVID-19 vaccines drove money out of the dollar and into risk. Latin American stocks and currencies had clocked large gains in November on optimism over a vaccine and stable U.S. politics. But most currencies still traded lower for the year, due to near-term uncertainties caused by the virus. "We remain optimistic that EM economies can weather the deleterious impact of renewed lockdowns far better this time than during the initial coronavirus surge," Ilya Gofshteyn, senior EM macro strategist at Standard Chartered, wrote in a note. Mexico's peso rose 0.7% to the dollar. The currency has benefited recently from optimism over improved U.S.-Mexico trade relations, as well as increased carry interest and higher oil prices. A survey showed the health of Mexico's factories improved slightly in November, though the last time the manufacturing sector was in growth territory was in October 2019, as the economic fallout of the coronavirus pandemic weighs on business. "Following the most challenging year in Mexico's modern economic history, we expect growth to experience a sharp rebound in 2021, though the outlook remains highly uncertain," strategists at UBS wrote in a note. "The Mexican peso should continue to be well-bid in the near term, as a positive global environment will likely prevail over difficult domestic economic and political dynamics." Colombia's peso rose 1.4%, while the Chilean peso gained 0.6% after data showed Chile's economic activity fell 1.2% in October from a year ago, inching closer to growth after months of contraction caused by the coronavirus pandemic. Latin American stocks also rose for the day, tracking gains across the broader emerging space. The MSCI's index of regional stocks jumped 4.5% to their highest level since early March, with Brazilian and Chilean stocks leading gains. Key Latin American stock indexes and currencies: Stock indexes Latest Daily % change MSCI Emerging Markets 1224.27 1.59 MSCI LatAm 2296.59 4.54 Brazil Bovespa 111471.61 2.37 Mexico IPC 43028.09 2.99 Chile IPSA 4110.47 1.92 Argentina MerVal 55010.80 0.803 Colombia COLCAP 1278.62 1.64 Currencies Latest Daily % change Brazil real 5.2320 2.17 Mexico peso 20.0110 0.77 Chile peso 758.9 0.24 Colombia peso 3546.5 1.35 Peru sol 3.6087 -0.08 Argentina peso (interbank) 81.4300 -0.15 Argentina peso (parallel) 149 4.03 (Reporting by Ambar Warrick and Shreyashi Sanyal in Bengaluru; Editing by Nick Macfie and Jonathan Oatis)

Stocks in London log best day in three weeks on recovery hopes

01 Dec 2020

Britain's FTSE 100 and mid-cap FTSE 250 had their best session in three weeks on Tuesday as upbeat Chinese factory data fuelled hopes for a global economic recovery from the COVID-19 crisis.

EMERGING MARKETS-Brazil's real outperforms Latam peers in November

30 Nov 2020

* Real set to add over 7% in Nov * Latam stocks set for second-best month on record * Brazil sovereign debt issues to remain challenging- economist (Updates prices throughout, adds comments) By Ambar Warrick and Shreyashi Sanyal Nov 30 Brazil's real was set to outperform other Latin American currencies in November on improving fiscal and economic trends, while optimism over a COVID-19 vaccine and the prospect of stable U.S. politics saw most regional stocks and units gaining for the month. The currency, which fell 0.2% the day, was set to add more than 7% for November, its best month in two years. Brazilian stocks were set for their best month in four years with a more than 16% gain. Brazil's public sector posted an unexpected surplus in October, the latest in a line of positive data that has underscored a fledgling recovery in Latin America's largest economy. But the real has vastly underperformed its regional peers this year, due to rising coronavirus cases and concerns over sustainable government spending due to the pandemic. "Debt financing will remain challenging amid a large number of maturities in early 2021. This outlook could change if the legislature passes measures that will reduce spending, but failure to move ahead with reforms mean that the Treasury will continue to face a difficult environment," Wilson Ferrarezi, economist at TS Lombard, wrote in a note. Other regional stocks and currencies were muted, but were set for strong monthly gains after a series of positive COVID-19 vaccine updates, while Joe Biden's U.S. presidential win raised hopes of stabler trade policies in the world's largest economy. The MSCI's index of Latam stocks was set to add more than 22% in November, its second-best month on record. As oil prices surged over the month on expectations of recovering demand after the rollout of a vaccine, the currencies of crude exporters Mexico and Colombia were set to add about 5% and 7.6% for the month, respectively. Mexico's peso was also aided by the central bank pausing a rate-cutting cycle. "In Mexico, softer-than-expected inflation in November reinforces our call that Banxico cuts are on the horizon," said strategists at J.P.Morgan. "However, we maintain that the 75bp easing cycle does not begin until March and ends in June." Key Latin American stock indexes and currencies: Stock indexes Latest Daily % change MSCI Emerging Markets 1205.57 -2.04 MSCI LatAm 2205.44 -1.49 Brazil Bovespa 109184.68 -1.26 Mexico IPC 41591.07 -0.2 Chile IPSA 4032.87 -2.04 Argentina MerVal 54439.74 -1.782 Colombia COLCAP 1256.20 -0.44 Currencies Latest Daily % change Brazil real 5.3567 -0.59 Mexico peso 20.1527 -0.63 Chile peso 763.7 0.47 Colombia peso 3594.25 0.30 Peru sol 3.6057 -0.10 Argentina peso (interbank) 81.3000 -0.28 Argentina peso (parallel) 151 3.31 (Reporting by Ambar Warrick and Shreyashi Sanyal in Bengaluru; Editing by Angus MacSwan and Richard Chang)

FTSE 100 ends best month since 1989 in a downbeat tone

30 Nov 2020

London's FTSE 100 fell on Monday, but recorded its biggest monthly gain in over three decades as investors bet on a working COVID-19 vaccine to speed up an economic recovery next year.

EMERGING MARKETS-Turkey's lira leads EMEA FX gains, most currencies set for weekly rise

27 Nov 2020

* Turkish c.bank move seen as step in right direction- analyst

EMERGING MARKETS-Turkey's lira eyes second week of gains, EMEA stocks rise

20 Nov 2020

Nov 20 Turkey's lira eased on Friday but was still headed for a second straight week of gains after the central bank hiked its policy rate and vowed to remain tough on inflation, while South Africa's rand held steady ahead of credit rating reviews.

EMERGING MARKETS-Turkey's lira leaps over 2% after c. bank hikes rates as expected

19 Nov 2020

* S.African rand set for third straight day of declines (Updates with lira's reaction to central bank policy decision, adds comments)

EMERGING MARKETS-Mexican peso gains; Colombian peso winner of the week

13 Nov 2020

* Colombian peso set to add 2% this week * Peruvian sol logs steep weekly losses * Brazil's real rises on positive economic data (Updates prices throughout, adds comments) By Ambar Warrick and Shreyashi Sanyal Nov 13 Mexico's peso rose on Friday after the central bank held interest rates steady, while most other Latin American currencies fell and were set for weekly losses as initial optimism over a coronavirus vaccine gave way to uncertainty over its delivery. The peso rose 1.4% after the bank left rates unchanged on Thursday, saying that it gave policymakers more options to establish inflation trends and observe the country's economic recovery. Still, the currency was set to end the week largely flat, having pared most of its initial gains this week on optimism over the vaccine and expectations of stabler U.S. trade policy after Joe Biden's presidency win. Brazil's real gained 0.1% after a central bank survey showed the country's economic activity rose more than expected in September, pointing to a strong performance in the third quarter. The real was set to lose slightly for the week. Colombia's peso edged higher for the day and was set to outperform its peers for the week with a 2% gain, recently taking support from the government trimming its expectations for an economic contraction in 2020. The country also outlined regulatory changes for pension funds to have more flexibility about investment options, in order to increase liquidity and help an economic recovery. "I personally think Colombia is very well placed. It's one of the few economies in the region that actually accelerated in 2019 and was poised to grow 4% pre-COVID shock," Eduardo Suarez, Vice-President of Latin America Economics at Scotiabank, told the Reuters Global Markets Forum. "It has an advantage that it has less uncertainty due to politics than other countries in the region." While emerging markets are set to eventually benefit from risk-driven capital inflows with the advent of a vaccine, they are likely to face short-term headwinds from uncertainty over when the vaccine will be released. Peru's sol was set for steep weekly losses after the ouster of President Martin Vizcarra sparked political unrest in the country. Argentina's central bank hiked interest rates on Thursday to rein in rampant inflation. But the peso showed little reaction, given that it is subject to strict capital controls. Latin American stocks rose 0.9%, set to gain for the week as expectations of easy monetary policy saw yield-hungry investors buying into equities. Elsewhere, Russia raised 2 billion euros ($2.36 billion) in Eurobonds on Thursday as it tapped the global debt market for the first time this year. Key Latin American stock indexes and currencies at 1834 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1189.22 0.6 MSCI LatAm 2089.12 0.86 Brazil Bovespa 104586.72 2.03 Mexico IPC 40353.56 0.04 Chile IPSA 4001.85 2.18 Argentina MerVal 49922.71 0.746 Colombia COLCAP 1210.86 0.3 Currencies Latest Daily % change Brazil real 5.4750 0.05 Mexico peso 20.3827 1.23 Chile peso 766 -0.80 Colombia peso 3640.7 0.02 Peru sol 3.6408 -0.03 Argentina peso (interbank) 79.7400 -0.21 Argentina peso (parallel) 168 -0.60 (Reporting by Ambar Warrick and Shreyashi Sanyal in Bengaluru; Editing by William Maclean and Alex Richardson)

European shares end flat as virus cases rise, logs weekly gains

13 Nov 2020

European shares ended flat on Friday as surging coronavirus cases compounded fears of the damage to the bloc's economy in the coming winter months, although the benchmark index clocked its second straight week of gains.

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