Tag Archives: MEXICO

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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POLL-Brazil stocks reach pre-coronavirus levels in 2021 | Instant News


* cpurl: //apps.cp./cms/? pageId = stock-index polling poll data

BUENOS AIRES / SAO PAULO / MEXICO CITY, 25 Nov (Reuters) – Stocks of razilian B will reach pre-pandemic levels by the middle of next year, but concerns about the impact of a second wave of coronavirus cases could limit recovery, a Reuters poll aired on Wednesday.

The benchmark Bovespa stock index is expected to partially cover that road by the end of 2020. The index has risen 70% from lows caused by COVID-19, which has caused nearly 170,000 deaths in Brazil.

However, Latin America’s largest equity market is seen stalling in the second half of 2021 due to concerns about the potential damage caused by a recurrence in the second-worst country after the United States.

“Increasing uncertainty and the possibility of a repeat of the lockdown in Europe and America carries a tougher scenario which, if materialized, will stop Ibovespa,” said Alexandre Jung, head of equity at Vero Investimentos.

The index is expected to close this year at 108,000 points, 0.6% above its value on Monday, and then climb to 117,500 points – close to its record in January – by mid-2021, the median estimate of 10 strategists surveyed on November 12 – 23 shows.

But it is expected to trade not too far from that level by the end of 2021, with investors on alert for any improvement in the precarious state of Brazil’s public accounts and the next steps of President Jair Bolsonaro’s administration.

Last week, credit rating agency Fitch affirmed its ‘BB-‘ rating on Brazil’s sovereign debt but maintained its negative outlook, citing a sharp widening in the government’s budget deficit and soaring debt.

“Investors will only look again at increasing their exposure to the country’s risk assets once important political and economic issues are determined in 2021, which will require a lot of effort,” Jung said.

Mexican equities are expected to return to pre-coronavirus levels by the end of next year, up 11% to 46,000 points from a forecast of a close of 41,500 on the last trading day of 2020, the survey showed.

While far short of its July 2017 record of 51,713.28 points, next year’s forecast is much more bullish than the final value forecast for the S & P / BMV IPC index in the last poll taken three months ago, at 42,600 points.

This is explained by speculation that Mexico’s central bank will maintain its dovish stance to ensure an economic recovery that does not have the massive spending stimulus imposed by its neighbors.

“As Mexico’s benchmark interest rate will likely stay at 4.0%, offering negative yields in real terms, investors will be looking for better returns on the local stock market,” said Gerardo Copca, chief market analyst at MetAnalisis.

Another story from the Reuters global stock market poll package: Reporting by Gabriel Burin; Additional polls by Peter Frontini at SAO PAULO, Miguel Ángel Gutiérrez at MEXICO CITY, Richa Rebello and Manjul Paul at BENGALURU; Edited by Ross Finley and Barbara Lewis

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Canada has successfully completed talks on a transitional trade continuity agreement with Britain | Instant News


In light of Britain’s exit from the European Union and with the extension of the Canada-EU Comprehensive Economic and Trade Agreement (CETA), the Government of Canada has been working hard to ensure the continuity of Canada-UK trade – especially now that we are building a strong economic recovery from the COVID-19 pandemic. .

Today, His Excellency Mary Ng, Minister for Small Business, Export Promotion and International Trade, together with Elizabeth Truss, UK Secretary of State for International Trade, announced the successful completion of talks for a Canada-UK Trade Continuity Agreement – a temporary Agreement that will go into effect as Canada and Britain work toward negotiating a comprehensive free trade agreement.

As CETA is no longer in effect in the United Kingdom from 1 January 2021, this new agreement will provide continued access to the benefits of CETA on a bilateral basis, including eliminating tariffs on 98% of Canadian products exported to the United Kingdom. This will provide a competitive advantage for Canadian exporters and businesses that will maintain preferential access to the UK market, even when the country leaves the EU.

This agreement will provide stability and predictability for businesses, exporters and workers in Canada and the United Kingdom. It will also maintain Canada’s high standards for business, workers and the environment while ensuring the continuity and efficiency of the country’s supply-managed product systems.

Canada and the United Kingdom have long shared a deep and positive relationship, with a long history of close collaboration. The Canadian government will continue to work with the UK to further enhance bilateral trade relations, including through a joint commitment to negotiate a comprehensive free trade agreement that is well suited to bilateral relations and interests. The government hopes to consult Canadians and the provinces and territories before returning to the negotiating table with Great Britain and will always prioritize the needs of Canadian workers and businesses.

Canada is committed to continuing strong and stable trade relations with the UK and EU to support our common economic prosperity.

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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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