Investment

EMERGING MARKETS-Latam FX, stocks fall; head for the weekly fall as Evergrande worries that it will last

Band Shreyashi Sanyal

September 24 (Reuters)Most currencies and stocks across Latin America were slashed on Friday as questions arose about whether China Evergrande would make a major interest payment that would prevent a potential global fall, which is the real lag. of Brazil to its peers in a week.

The MSCI index for Latin American currencies .MILA00000CUS dropped 0.8%, with currencies taking cues from Asian counterparts on fears Beijing would let them swallow heavy losses in a liquidity crisis that deepened in China Evergrande 3333.HK.

Brazil is true BRBY, BRL = humina 0.7% against the dollar in early trading a day after the central bank’s move to raise interest rates was seen as less hawkish than expected. The currency is heading for its third straight weekly decline to fall to 1%.

Adding to the downbeat mood, data showed consumer confidence in Brazil reached a 5 -month low in September, as higher inflation, potential problems with power supplies and political uncertainty hit -contribute to pessimism.

“Significant increases in inflation since the beginning of the year amid high unemployment rates are likely to be the main reasons behind the recent decline in consumer confidence,” strategists at Citi Research wrote in a note. of the client.

Brazil’s central bank has also detailed the lines of credit that will be offered to banks by the end of the year, when emergency loans issued in 2020 to ride out the pandemic will expire.

The Mexican peso MXN = dip 0.1%, set to close the week with declines of 0.2%. The data showed that sales in Mexico fell 0.4% in July from June.

The currency of the Chilean copper producer CLP = is also set to end the week in denials. The country’s President Sebastian Pinera released a $ 82.1 billion draft budget for 2022 on Thursday that he said would begin to recognize a balloon deficit, following more than a year of emergency spending to combat coronavirus pandemic.

The Colombian peso COP = fell 0.1%, while the Sol of Peru PEN = boosted the trend to stabilize 0.3%.

Latin American bourses also decided in red, along with the MSCI index .MILA00000PUS collapse 1.5% and tracking the fourth straight weekly loss.

Chilean shares .SPIPSA fell 0.9%, leading the declines among its peers, tracking lower copper prices. MET / L

Major Latin American stock and currency indices 1840GMT:

Stock indices

Latest

Daily% change

MSCI emerging markets .MSCIEF

1264.19

-0.65

MSCI LatAm .MILA00000PUS

2300.77

-1.49

Brazil Bovespa .BVSP

113108.59

-0.84

Mexico IPC .MXX

51244.93

-0.43

Chile IPSA .SPIPSA

4373.77

-0.86

Argentina MerVal .MERV

74273.47

-0.629

Colombia COLCAP .COLCAP

1303.55

-0.66

Currencies

Latest

Daily% change

Real Brazil BRBY

5.3465

-0.71

Mexico floor MXN = D2

20,0650

-0.11

Chile floor CLP = CL

792.9

-1.06

Colombia floor COP =

3835.31

-0.10

Peru sol PEN = PE

4,1082

-0.30

Argentine Peso (interbank) ARS = RASL

98,5600

-0.02

Argentine Peso (parallel) ARSB =

183

1.09

LatAm /EMRG equity performancettps: //tmsnrt.rs/3CzQCtI

(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Andrea Ricci and Diane Craft)

(([email protected]; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Leave a Reply

Your email address will not be published.