EMERGING MARKETS-Latam FX, fall in stocks; head for weekly falls as Evergrande worries persist
Band Shreyashi Sanyal
September 24 (Reuters) – Most Latin American currencies and stocks were moderate on Friday as questions arose as to whether China Evergrande would make a key interest payment that could avoid potential global fallout as the Brazilian real lagged behind. compared to his peers for the week.
The MSCI Latin American Currency Index .MILA00000CUS was down 0.8%, with currencies drawing inspiration from their Asian counterparts fearing Beijing would let foreign bondholders swallow large losses as liquidity crunch deepens in China Evergrande 3333.HK.
The real one from Brazil BRBY, BRL = weakened 0.7% against the dollar early in trading a day after the Brazilian central bank’s decision to raise interest rates was seen as less hawkish than expected. The currency is heading for its third consecutive weekly decline to 1%.
Adding to the gloomy mood, data showed that consumer confidence in Brazil hit its lowest level in 5 months in September, as rising inflation, potential problems with the electricity supply and the political uncertainty contributed to pessimism.
“The significant increase in inflation since the start of the year amid still high unemployment is probably the main reason for the recent deterioration in consumer confidence,” Citi Research strategists wrote in a report. customer note.
Brazil’s central bank also detailed the lines of credit it will offer banks at the end of the year, when emergency loans issued in 2020 to overcome the pandemic expire.
The Mexican Peso MXN = dived 0.1%, should end the week with drops of 0.2%. Data showed Mexican retail sales fell 0.4% in July compared to June.
The currency of copper-producing Chile CLP = also had to end the week down. The country’s President Sebastian Pinera on Thursday unveiled a $ 82.1 billion 2022 budget proposal that he said would start to bring a growing deficit under control, after more than a year of emergency spending to fight the coronavirus pandemic.
Colombian peso COP = fell 0.1%, while the soil of Peru PEN = thwarted the trend at business 0.3%.
Latin American stock markets also traded resolutely in the red, with the MSCI index .MILA00000PUS fall 1.5% and the follow-up to his fourth consecutive weekly loss.
chilean stocks .SPIPSA fell 0.9%, leading to declines among its peers, following the decline in copper prices. MET / L
Main stock market indices and currencies in Latin America at 1840GMT:
Stock market indices
% daily change
MSCI Emerging Markets .MSCIEF
MSCI Latin America .MILA00000PUS
Brazil Bovespa .BVSP
Mexico CPI .MXX
Chile IPSA .SPIPSA
Argentina MerVal .MERV
Colombia COLCAP .COLCAP
% daily change
Real brazil BRBY
mexican peso MXN = D2
Chilean peso CLP = CL
Colombian peso COP =
Peruvian soil PEN = PE
Argentine peso (interbank) ARS = RASL
Argentine peso (parallel) ARSB =
Performance of LatAm / EMRG shareshttps://tmsnrt.rs/3CzQCtI
(Reporting by Shreyashi Sanyal in Bangalore; Editing by Andrea Ricci and Diane Craft)
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