Tag Archives: Chile

THE EMERGING MARKET – Latam FX Drops; Brazil’s real advantage in increasing prospects | Instant News


    * U.S. holiday gives few trading cues to stocks
    * Real stabilizing, Brazil central bank head says
    * Petrobras shares down after firm cuts spending plan

    By Ambar Warrick
    Nov 26 (Reuters) - Brazil's real ticked higher on Thursday
after encouraging comments from the central bank president,
while most other Latin American units edged lower as optimism
over a coronavirus vaccine waned.   
    The real added 0.3% after central bank president
Roberto Campos Neto said the currency looked to have stopped
weakening and was now stabilizing, indicating that upward
pressure on inflation this year will ease.
    The country reported its smallest monthly primary deficit
since the advent of the pandemic, indicating a recovery in Latin
America's largest economy was underway. Formal job creation in
Brazil also surged to a record high in October.

    But a resurgence in infections could potentially topple the
fledgling recovery and pressure the real, which is among the
worst performing emerging market currencies this year.
    "Although we do not expect strict lockdown measures to be
reimposed in the near term, a strong second wave would increase
the odds of (President Jair) Bolsonaro pushing for the extension
of crisis-related benefits into 2021," Wilson Ferrarezi, an
economist at TS Lombard, wrote in a note.
    "Our base case is that the emergency aid measures will end
in December, barring a worse-than-expected deterioration in the
pandemic."  
    High spending due to the pandemic had seen Brazilian debt
levels spiking, giving the government little room to increase
spending in response to higher cases.
    Brazilian stocks trickled lower, with a market
holiday in the United States providing a dearth of cues to
regional equities. 
    Shares of Petroleo Brasileiro SA fell about 1.9%
after the state-controlled oil firm cut its five-year investment
plan due to weakness in the oil market.
    Mexico's peso fell 0.5% as oil prices dipped.
    Chile's peso was flat as investors weighed high copper
prices against the Chilean Senate's rejection of an
opposition-led coronavirus relief bill giving citizens more
opportunities to withdraw funds from their pensions.

    Congress had let Chileans withdraw up to 10% of their funds
from Chile's private pension system in July to ease the economic
burden of the coronavirus lockdown.
    
    Key Latin American stock indexes and currencies:
    
                              Latest     Daily % change
 MSCI Emerging Markets         1229.21                0.9
                                        
 MSCI LatAm                    2240.33               0.27
                                        
 Brazil Bovespa              109869.12              -0.24
                                        
 Mexico IPC                   41984.87              -0.51
                                        
 Chile IPSA                    4103.33              -0.77
                                        
 Argentina MerVal             54392.03              0.446
                                        
 Colombia COLCAP               1259.48              -0.33 Currencies             Latest     Daily % change
 Brazil real                    5.3045               0.26
                                        
 Mexico peso                   20.0500              -0.55
                                        
 Chile peso                        765              -0.08
                                        
 Colombia peso                 3619.57              -0.11
 Peru sol                        3.605              -0.06
                                        
 Argentina peso                80.8700              -0.09
 (interbank)                            
                                        
 
    

 (Reporting by Ambar Warrick in Bengaluru
Editing by Paul Simao)
  

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THE EMERGING MARKET-Brazilian Real surged 1%, Latam shares fell after rally | Instant News


    * Real firms for a second day 
    * Copper surge supports Chile's peso
    * Mexican peso eases from 9-month high 

    By Sruthi Shankar
    Nov 25 (Reuters) - Brazil's real jumped again on Wednesday,
outperforming its Latin American peers on improving economic
data and continued  optimism over COVID-19 vaccines and U.S.
politics. 
    Brazil's real firmed for a second session, rising over
1%after figures showed the country's current account deficit
narrowed to its smallest in 2-1/2 years in October, helped by a
bigger-than-expected surplus in goods trade.  
    Worries about Brazil's fiscal health, record-low interest
rates and a second wave of coronavirus cases have hammered the
real this year, but a brighter global mood has boosted the
currency by more than 7% in November.
    The Chilean peso rose 0.3% as a surge in copper
prices to near seven-year highs supported the currency of the
world's top copper producer.
    The Colombian peso gained 0.6% , but the  Mexican
peso eased from nine-month highs.  
    Investors have rushed to riskier emerging market assets in
recent weeks after positive data on COVID-19 vaccine efficacy,
while news that U.S. President Donald Trump began cooperating
with President-elect Joe Biden's transition team ended weeks of
political uncertainty in Washington. 
    "While there has been already very strong positive news flow
surrounding the vaccine, we do not believe that the vaccine
trade is already done yet," Citi's Dirk Willer said in a note.
    "Pullbacks, maybe related to month end equity selling,
should be seen as a buying opportunity." 
    Stocks in the region edged higher, but
Brazil's Bovespa and Mexico's IPC slipped almost
0.3%.
     A Reuters poll showed Brazilian stocks will reach
pre-pandemic levels by the middle of next year, but concern
about the impact of a resurgent pandemic could limit the
recovery.
    The index is predicted to close this year at 108,000 points.
It was last trading at 109,517. 

    Key Latin American stock indexes and currencies:
    
                                       Latest       Daily %
                                                     change
 MSCI Emerging Markets                    1217.39        -0.7
 MSCI LatAm                               2236.67        0.45
 Brazil Bovespa                         109517.84       -0.24
 Mexico IPC                              42590.89       -0.34
 Chile IPSA                               4200.68        0.08
 Argentina MerVal                        54697.84       1.038
 Colombia COLCAP                          1266.46       -0.33 Currencies                  Latest       Daily %
                                                     change
 Brazil real                               5.3201        1.02
 Mexico peso                              20.0815       -0.42
 Chile peso                                 771.1        0.30
 Colombia peso                            3612.17        0.60
 Peru sol                                  3.6078        0.03
 Argentina peso (interbank)               80.7800       -0.10
                                                   
 

 (Reporting by Sruthi Shankar in Bengaluru; editing by Jonathan
Oatis)
  

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THE EMERGING MARKET – Strengthened Mexican peso due to oil boost; Brazil was really hit by the second wave of fear | Instant News


    * Mexico's peso set for third straight week of gains
    * Brazil's real leads losses for the day
    * MSCI Latam stock index down 1.1%

 (Adds details, updates prices)
    By Shriya Ramakrishnan and Ambar Warrick
    Nov 20 (Reuters) - The Mexican and Colombian pesos led gains
across Latin American currencies on Friday thanks to higher
crude prices, while Brazil's real was the biggest faller on
fears of a second wave of coronavirus infections.
    Most regional currencies were set for weekly gains as
investors viewed progress towards a COVID-19 vaccine as a net
positive for sentiment.
    Mexico's currency, which rose about 0.5% to the
dollar, was also set to outpace its regional peers for the week,
as the prospects for effective COVID-19 vaccines and hopes that
OPEC and its allies will keep production in check lent support
to oil prices.
    The currency recently benefited from the Mexican central
bank pausing its rate-cutting cycle.
    "MXN is a carry story pure and simple. When adjusting for
both volatility and liquidity it is still the world's number one
carry currency," said Christian Lawrence, senior market
Strategist at Rabobank. 
    "Any periods of rising demand for risk will see support for
MXN. Domestic fundamentals don't matter at the moment." 
    Colombia's peso rose 0.5%, while Brazil's real
led losses for the day, shedding 1.3% against the dollar as
fears of a second wave of infections in Latin America's largest
economy grew.
    But the currency was set to gain for the week after the
government raised its growth forecast for the year and pledged
to fast track reforms to privatisation and fiscal spending. 
    Brazil's government also trimmed its year-end budget deficit
forecast thanks to an anticipated reduction in mandatory
spending and an increase in revenues.
    Peru's sol fell 0.5%, but was set to end a volatile
week slightly higher as political tensions in the country cooled
after the appointment of interim President Francisco Sagasti. 
    A gauge of Latin American stocks fell 1.1%
during the day, but was still set to end the week higher.    
    Chile's peso fell 0.5% even as prices of its main
export, copper, surged to their highest in 29 months on Friday.

    Argentina's central bank on Thursday said companies that
participate in the country's natural gas production plan will
have free access to the official foreign exchange
market.
    The move opens a potential loophole in strict capital
controls which have been in place since August last year, aimed
at protecting foreign exchange reserves, after the collapse of
the peso currency. 
    
    Key Latin American stock indexes and currencies:
    
                              Latest    Daily % change
 MSCI Emerging Markets         1208.74             0.69
                                        
 MSCI LatAm                    2159.51            -1.09
                                        
 Brazil Bovespa              105999.53            -0.63
                                        
 Mexico IPC                   41884.48             0.04
                                        
 Chile IPSA                    4054.32             0.65
                                        
 Argentina MerVal             51156.96            0.406
                                        
 Colombia COLCAP               1230.70            -0.01 Currencies             Latest    Daily % change
 Brazil real                    5.3791            -1.25
                                        
 Mexico peso                   20.0770             0.51
                                        
 Chile peso                      762.9            -0.52
                                        
 Colombia peso                 3630.95             0.47
 Peru sol                       3.5947            -0.53
                                        
 Argentina peso                80.3500            -0.09
 (interbank)                            
                                        
 
    

 (Reporting by Shriya Ramakrishnan in Bengaluru; Editing by
Kirsten Donovan)
  

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THE EMERGING MARKET – Latam FX makes it easy to profit; Mexican peso, the real revival of Brazil | Instant News


    * Brazil GDP growth next year could top 4% - economy
minister
    * Mexico's peso set to snap two-day losing streak 
    * Regional stocks fall as broader EM retreats

 (Adds details, updates prices)
    By Shriya Ramakrishnan and Ambar Warrick
    Nov 19 (Reuters) - Mexico's peso and Brazil's real led gains
across Latin America on Thursday amid hopes of a swift
post-pandemic recovery in the region's two largest economies,
while most other units eased as excitement over a vaccine cooled
with a surge in global infections.
    Mexico's peso strengthened 1.1% and was set to snap a
two-day losing streak, having benefited from the central bank
recently signalling a pause to a rate-cutting cycle.
    Democratic candidate Joe Biden's victory in the U.S.
presidential election also raised hopes for more stable trade
policies.
    Mexico earlier this week completed a debt refinancing
operation worth $6.6 billion in international markets, including
a heavily over-subscribed bond offer.
    The Brazilian real added 0.6% after the economy
minister said Latin America's largest economy could surprise on
the upside and grow more than 4% next year.    
    Brazil's central bank also said on Wednesday it will
intervene in the foreign exchange market to curb year-end
volatility caused by local banks unwinding their so-called
overhedge positions.
    "Although there are multiple factors pointing to a positive
outlook for Brazil in the short to medium term–including the
stronger-than-expected recovery and preparations for mass
vaccination, the fiscal outlook remains troubling," analysts at
TS Lombard wrote in a note, adding that progress in fiscal
reforms was a sticking point for the government's credibility. 
    The government had recently pledged to fast track reforms to
privatization and fiscal spending.
    Optimism about encouraging developments in vaccines for the
novel coronavirus provided an initial boost to Latam risk
assets, but like last week, the rally ran out of steam as 
infections continued to rise and more countries outlined
economically-damaging lockdowns.
    "(Vaccines)are unlikely to have much impact broadly until at
least Q2. We think the market is a bit too sanguine and
overlooking the near-term outlook, which looks to be more like a
hole in the road than a speed bump," Mazen Issa, senior FX
strategist at TD Securities wrote in a note.
    Chile's peso fell 0.1%, while Colombia's peso
shed 0.2%.
    Peru's sol was set to end a two-day winning streak as
political uncertainty still weighed.
    A gauge of Latin American stocks fell 0.4%
after hitting a more-than eight-month high, while broader
emerging market equities also retreated.
    
    Latin American stock indexes and currencies: 
    
                              Latest     Daily % change
 MSCI Emerging Markets         1200.85              -0.55
                                        
 MSCI LatAm                    2182.01              -0.36
                                        
 Brazil Bovespa              106225.15                0.1
                                        
 Mexico IPC                   41995.30              -0.61
                                        
 Chile IPSA                    4028.50              -1.95
                                        
 Argentina MerVal             51243.13             -0.102
                                        
 Colombia COLCAP               1234.03              -0.04 Currencies             Latest     Daily % change
 Brazil real                    5.3015               0.63
                                        
 Mexico peso                   20.1360               1.12
                                        
 Chile peso                      758.7              -0.11
                                        
 Colombia peso                 3647.95              -0.18
 Peru sol                       3.5757              -0.17
                                        
 Argentina peso                80.2700              -0.12
 (interbank)                            
                                        
  
    

 (Reporting by Shriya Ramakrishnan and Ambar Warrick in
Bengaluru; editing by David Evans and Grant McCool)
  

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6 places you can travel in December | Instant News



Much of the world is now seeing glimmers of hope following news of the first positive results from two vaccine trials. And a number of others may arrive soon. It could mean that the world can open up again and the travel industry can resume its operations. But things are not going to change overnight. Coconut palm tree on paradise white sand beach and turquoise sea. Many travelers now dream of such … [+] a scene. getty There’s going to be a wait for more data, official vaccine authorizations, and then of course the complicated process of getting the vaccine out to everyone who needs it. It may take months. What we also don’t know is whether getting the vaccine will mean opening more borders. It is likely that some countries will take this approach while others will not, and there will be a patchwork of policies until 2021 where some vaccines are accepted in some places but not in others, and so on. . The good news is that there are plenty of places to go for those of us who want to travel in the months ahead. And new countries are being added to the list even as infection rates rise in the Western world. This means that while we need to take a close look at the risks and be careful in planning trips, there are some great options for getting away from it all. Last week, we looked at several places where tourists are welcome and the COVID count is low. MORE FROM FORBEST These 8 Places Have Low Covid Rates and Open Borders By Gabriel Leigh As a follow-up, here’s a look at the six best places to consider for a December getaway, with some new additions included. Chile Torres del Paine National Park in Patagonia, Chile getty A beautiful country full of incredible natural wonders, Chile is reopening its doors to travelers, and just in time for their summer too. Chile has been closed to non-residents for months, so this is great news for anyone hoping to travel to deep South America. If you can get a negative test result relatively quickly, this is a promising option. Entry requirements: From November 23, travelers will be able to enter Chile through its main airport in Santiago provided they bring a negative PCR test. Two important points to note, however. First, Chile has decided that during the first two weeks (until December 7), visitors who have been to high-risk countries, including the United States, will have to quarantine themselves for 14 days, even with a negative test. So it might be worth waiting until next month. Second, the PCR test should not have been done more than 72 hours before arrival, which is a stricter schedule than for many other countries. This may mean that urgent treatment is needed to ensure that the test is close enough to start while maintaining the result over time. Current trend of COVID-19: stable. The number of cases has been fairly stable since June, and as Chile enters the summer, that will hopefully remain the case. Peru’s upscale Miraflores neighborhood, Lima, located atop cliffs overlooking the Pacific Ocean. getty Peru offers a lot for your money in terms of proximity to the United States (only a five or six hour flight from Miami) and distance and difference. Another recently reopened country full of fascinating sights and great food, this is a good option and could easily be combined with Chile for longer trips. Entry Requirements: A negative PCR test performed within 72 hours of departure. There is currently no quarantine requirement. Note that there is a national curfew at 11 p.m. Current trend of COVID-19: stable and improving. The photo at the moment is pretty good. Dominican Republic A mountain and sea landscape in the Dominican Republic getty As noted earlier, the Dominican Republic offers an excellent mix of beautiful scenery, good weather, easy entry, and low infection rates. If you are looking for a relaxing Caribbean getaway this probably is the one. Entry Requirements: No testing is required to enter although there may be a health check (such as temperature checks) upon arrival. Current trend of COVID-19: A few small peaks, but very low. Sailboat from French Polynesia in the seas of the islands of French Polynesia. The lush island of Bora Bora in the … [+] Context. getty It’s a relatively long flight from the US to French Polynesia, but there are several non-stop options from the west coast, and the scenery on arrival can be worth it. Entry requirements: proof of negative test passed no more than three days prior to arrival, plus a health record which can be completed here. An additional self-administered test is then required four days after arrival (the kit is provided upon arrival). No quarantine is required. Current trend of COVID-19: The number of cases has increased. Although in absolute terms, the figures remain relatively low. Definitely one to watch out for, but not necessarily a reason to cross it off your list. Hawaii A typical scene from the island of Kauai in Hawaii. getty Hawaii does not need to be presented, and after several months of mandatory quarantine, even for arrivals from the continental United States, it is now possible to skip that by bringing a negative test result. Additionally, there are convenient options for getting tested at multiple airports, in some cases facilitated by the airline you are traveling with. Entry conditions: negative test before travel to avoid quarantine. Those who do not have a test result can still leave, but will have to quarantine themselves for 14 days. Current trend of COVID-19: Relatively stable. Hawaii has seen small spikes lately, but nothing quite like many other states in the United States. Overall, infection rates have been very low and the situation well managed. England * If you are going to England, maybe forgo London and head straight to the Lake District. A view of … [+] the slopes of High Stile, looking towards Fleetwith Pike. getty This may seem like an unlikely choice at the moment and in fact it does come with a few caveats. England are currently in the midst of yet another lockdown due to end on December 2. It could end up being extended. They are also experiencing an increase in cases. On top of that, visitors from most countries are required to self-quarantine for 14 days. However, it is possible to enter the country even for Americans. And beyond that, many of the current obstacles may be only temporary. If things go well in the coming weeks, in other words, it might be a surprising country to add to the list in December. Here’s how to do it: Assuming the lockdown helps get the number of cases under control and lifted, the only remaining issue for visitors would be the 14-day quarantine (for those not on the list of “Travel lanes”, which currently includes most people). There is more potential good news on this front, with unconfirmed indications that Britain will reduce the quarantine time to 7 days for those who take a PCR test on day 5 and test negative. Uncertainty is everywhere, but there is hope. If we’ve learned anything since the start of this year, it’s that it’s very difficult to predict the course this pandemic will take. And with that in mind, planning a trip is subject to a lot of uncertainty and some risk. However, for those with the inclination and the right level of risk tolerance, it is still possible to plan trips. We are hopefully at the start of a period when vaccines are becoming more and more abundant, which will eventually get us out of the worst. For now, it is better to proceed with caution and remain as optimistic as possible. .



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