Most Latin American markets traded modestly higher, taking advantage of a slightly weaker dollar globally, just hours ahead of the US Federal Reserve’s monetary policy announcements.
* The market expects the Fed’s benchmark rate to rise a quarter of a percentage point to 4.75%, the smallest increase since the agency began raising rates 10 months ago to control inflation.
* This week is going to be crucial to know if we continue to party with a risk appetite environment like in January, depending on the particular dynamics we have around the data coming out of the Fed and the meetings of the European Central Bank and the Bank of England,” said Munir Jalil, BTG Pactual’s chief economist for the Andean region.
Latin American markets trade modestly higher ahead of Fed announcements
The Mexican peso strengthened 0.45% to 18.7372 units per dollar, while the main S&P/BMVIPC stock index. Which comprises the 35 most liquid companies in the local market, advanced 0.37% to 54,781.97 points, shortly after the start of the session.
The Mexican peso strengthene 0.45% to 18.7372 units to the dollar. While the main S&P/BMVIPC stock index, which comprises the 35 most liquid companies in the local market. Advance 0.37% to 54,781.97 points, shortly after the start of the session.
* The Colombian peso appreciated 0.49% to 4,642 units to the dollar, while on the stock market, the benchmark MSCICOLCAP index lost 0.04% to 1,289.55 points.
Latin American markets trade modestly higher ahead of Fed announcements
* In Brazil, the real trade marginally down 0.06% at 5.0756 to the dollar. The Bovespa stock index was down 0.83% at 112,484.56 points.
* In Argentina, the peso was down 0.19% at 187.35 units to the dollar. While Argentina’s leading S&P Merval index was up 0.33% at 254,383.50 points. Booste by rises in foreign-listed financial and energy stocks.
* The Peruvian currency, the sol, was down just 0.05% at 3.845/3.849 units to the dollar. Meanwhile, the Lima Stock Exchange benchmark improved 0.25 per cent to 584.11 points.
Latin American stock markets experienced a drop in the value of their currencies and shares. Cause by investors’ fears about the future decisions of the world’s major central banks. The Federal Reserve, the European Central Bank and the Bank of England will play an important role in this situation in the coming week. As a result, Latin currencies have fallen sharply against the dollar.
This was compounded by a drop of just over 1% in the price of oil – a major currency generator in the region – due to impending interest rate hikes by central banks and signs of strength in Russian exports. The week’s attention will focus on the Fed’s first interest rate announcement of the year, scheduled for Wednesday, followed by the Bank of England and the European Central Bank on Thursday.
