Latam currencies outperform EM peers; stocks down with global selloff
China's anti-lockdown protests shake stocks and oil
Chile's Escondida mine workers accept BHP's offer
Credit default ratio in Brazil hits highest in about 4 years
By Bansari Mayur Kamdar
Nov 28 (Reuters) -
Latin American currencies outperformed their emerging market peers on Monday, while stocks in the commodity-heavy region slipped with a global
sell-off in global markets
spurred by concerns about growth in China as investors focused on protests there.
The U.S. dollar index =USD swung between gains and losses and was last up 0.3%. MSCI's index of Latin American currencies .MILA00000CUS edged 0.1% up against the dollar while an index of all emerging-market currencies .MIEM00000CUS dropped 0.4%.
Protests against strict COVID-19 curbs in the world's second-largest economy pushed the U.S. benchmark S&P 500 .SPX down 1.6%. A LatAm stocks index .MILA00000PUS dipped 0.5% while emerging market stocks overall .MSCIEF declined 1.1%.
"...People are struggling to think about, first of all, what's happening in China with these protests, how the government is going to respond and how that's going to feed into global trade and global growth," said Rachel Ziemba, founder of Ziemba Insights.
"But, compared to other markets, for example oil that has fallen quite sizably, the currency markets are still sort of looking for a direction."
The Brazilian real BRL= added 0.8%, leading gains among regional currencies. President-elect Luiz Inacio Lula da Silva is expected to announce his economic team in the coming days, a close aide said, as speculation grows about who will be the country's next finance minister.
Uncertainty about Lula's cabinet picks and fiscal policy rattled Brazilian assets this month, with the currency shedding 3.5%.
A broad measure of Brazilian consumer and business credit default ratios rose in October to its highest level in almost four years, central bank data showed, amid high borrowing costs and aggressive monetary tightening.
Mexico's peso MXN= rose 0.2%. The country posted a $986 million trade deficit in October in seasonally adjusted terms.
Colombia is preparing to carry out a
debt swap for global bonds
in dollars due in 2033, in exchange for bonds due to mature in 2023 and 2024. Its currency peso COP= rose 0.6% against the dollar.
Currencies of copper producers Chile CLP= and Peru PEN= gained 1.1% and 0.4%, respectively, against the dollar.
Workers at Chile's Escondida mine accepted a new offer from BHP BHP.AX and will not move forward with a strike that had been planned for Monday and Wednesday, their union said Monday.
Chevron Corp CVX.N on Saturday received a U.S. license allowing the second-largest U.S. oil company to expand its production in Venezuela and bring the South American country's crude oil to the United States.
Key Latin American stock indexes and currencies at 2010 GMT:
Daily % change MSCI Emerging Markets
MSCI LatAm .MILA00000PUS
Brazil Bovespa .BVSP
-0.22 Mexico IPC .MXX
-0.73 Chile IPSA .SPIPSA
-0.8 Argentina MerVal .MERV
-0.203 Colombia COLCAP .COLCAP
Daily % change Brazil real BRBY
-0.03 Mexico peso MXN=D2
0.17 Chile peso CLP=CL
1.01 Colombia peso COP=
0.64 Peru sol PEN=PE
0.34 Argentina peso (interbank)
Argentina peso (parallel)
Reporting by Bansari Mayur Kamdar and Devik Jain in Bengaluru; Editing by Jonathan Oatis and Cynthia Osterman
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.