Home Argentina market EMERGING MARKETS – Brazilian Real Leads Latam FX Higher; shares jump 2%

EMERGING MARKETS – Brazilian Real Leads Latam FX Higher; shares jump 2%

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Band Bansari Mayur Kamdar

May 23 (Reuters)Latin American stocks rose more than 2% on Monday as global risk sentiment improved and firm metal prices boosted commodity-heavy indexes, while currencies rose on a weaker dollar.

The MSCI Latam Stock Index .MILA00000PUS climbed 2.4%, outpacing the 0.1% decline in the broader emerging markets index .MSCIEF.

“We still have a momentum where some Latin American countries could benefit more than their emerging market peers simply because they are better positioned in this commodity rally and some central banks are a bit ahead of the curve. curve,” said Rachel Ziemba, founder of Ziemba Insights.

The US dollar index =USD fell 0.7%, supporting riskier currencies, while an improvement in sentiment around China as Shanghai began to emerge from lockdown also reassured investors. XRF/

The Currency Index .MILA00000CUS rose 1.1%, led by a 1.8% jump in the Brazilian real BRBY, BRL=.

Meanwhile, miner Vale SA VALE3.SA top of Brazil’s Bovespa index .BVSP 1.1% higher as iron ore prices jumped after India raised export duties on some commodities to contain inflationary pressures. IRON-ORE/

Copper prices hit their highest level in more than two weeks, supported by falling inventories and a weaker dollar, lifting producer currencies Chile CLP= and Peru PEN= up 0.9% and 0.5%, respectively. MET/L

The popular Mexican peso MXN= 0.4% in a market attentive to the next monetary policy decisions of the American Federal Reserve and the Bank of Mexico to fight against inflation.

Mexico’s inflation data, due later, is expected to have slowed in the first half of May, although it is still well above central bank targets, bolstering expectations of further interest rate hikes. interest throughout the year.

“Mexico continues to be a country that’s really struggling to develop and doesn’t have a lot of policy space fiscally and monetaryally. And so we’re going to continue to see this combination of relatively high inflation and low growth,” Ziemba said.

“The central bank will likely continue on its hiking path with moderate increases.”

In Colombia, presidential candidates wrapped up their campaign on Sunday with massive public events to win voter support for election week.

The Colombian peso COP= rose almost 1% against the dollar.

Elsewhere, the Russian ruble RUBUTSTN=MCX firmed 4.5% against the dollar, supported by capital controls and an upcoming end-of-month fiscal period. UK/RUB

Main stock indices and currencies in Latin America at 14:45 GMT:

Stock indices

Latest

% daily change

MSCI Emerging Markets .MSCIEF

1034.79

-0.05

MSCI Latam .MILA00000PUS

2433.71

2.42

BrazilBovespa .BVSP

109572.31

1

Mexico IPC .MXX

51577.43

0.11

Chile IPSA .SPIPSA

5084.47

2.04

Argentina MerVal .MERV

88968.27

0.964

Colombia COLCAP .COLCAP

1475.08

1.08

Currencies

Latest

% daily change

Brazilian real BRBY

4.7971

1.54

mexican peso MXN=D2

19.7971

0.27

chilean peso CLP=CL

827.8

1.10

Colombian peso COP=

3927.85

0.94

Soil of Peru PEN=PE

3.707

0.57

Argentinian peso (interbank) ARS=RASL

118.9500

-0.39

Argentinian peso (parallel) ARSB=

202

0.99

(Reporting by Bansari Mayur Kamdar and Shreyashi Sanyal in Bengaluru; Editing by Bernadette Baum)

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