0 Min, 0 Min, 0 Min, 0 Min, 0 Min Read more: * Mexican peso will have worst day in nearly a month * US inflation surges, putting risk assets under pressure In May, Brazil’s service sector saw a spike in activity (Updates prices)
Susan Mathew and Ambar Warrick
Reuters, July 13 – On Tuesday, Mexico’s peso sank 1% on expectations of additional government intervention in the oil sector, while most Latin American currencies declined as growing US inflation prompted fears of Federal Reserve monetary policy tightening.
Mexican President Andres Manuel Lopez Obrador has stated that he intends to send a constitutional amendment to Congress, which will be fiercely opposed by independent power companies and investors who believe it will harm competition.
Given the president’s diminished majority in the Senate and Lower House following the mid-term elections last month, Citi strategists predicted that reaching an agreement with the opposition would be tough.
The Mexican peso fell 1.1 percent, putting it on track for its lowest day in over a month.
The peso has been pushed down by recent oil market volatility. While an OPEC+ conflict could result in tighter supplies, the International Energy Agency warned that there is still a possibility of a race for market share.
Meanwhile, the Brazilian real recovered its losses as the day progressed. Given that the country’s economic growth has been entirely positive this year, market professionals are pretty optimistic about the real to the end of the year. They do, however, warn of political dangers.
According to data released on Tuesday, services activity in Brazil increased by 23.0 percent in May compared to the same month last year.
The dollar rose against most other currencies as statistics revealed that consumer prices in the United States rose at their fastest rate in 13 years in June.
A sustained rise in inflation might push prices above the Federal Reserve’s target inflation range, forcing the Fed to tighten policy sooner than expected.
Chile’s peso fell 0.9 percent after copper prices fell as a result of lower Chinese imports, adding to the country’s losses.
The sol of Peru edged closer to all-time lows, while the peso of Colombia dipped little.
The International Monetary Fund said progress was being made in talks over the nearly $45 billion owed to the Fund in an update on Argentina’s financial troubles.
Brazilian equities surged 0.6 percent, bucking the trend in other regional benchmarks. Hypera Pharmaceuticals topped the Brazilian index after announcing the purchase of 12 over-the-counter and prescription brands in Latam from Sanofi for $190.3 million.
The following are some of the most important Latin American stock indexes and currencies:
Indexes of stocks The most recent daily percent change
MSCI Emerging Markets 1337.76 0.82 MSCI Emerging Markets 1337.76 0.82 MSCI Emerging Markets 13
MSCI Latin America 2567.83 0.44 MSCI Latin America 2567.83 0.44 MSCI Latin America 2567.83 0.
Brazil’s Bovespa index is currently trading at 128352.97 0.59.
Mexico IPC 49368.13 -0.85 Mexico IPC 49368.13 -0.85 Mexico IPC 49368.
IPSA 4185.60 -1.36 Chile IPSA 4185.60 -1.36 Chile IPSA 4185.60
Argentina MerVal 64138.64 -0.119 Argentina MerVal 64138.64 -0.119 Argentina MerVal 64138.64
COLCAP 1292.89 -0.43 COLCAP 1292.89 -0.43 COLCAP 1292.89 –
Brazil real 5.1704 0.05 Brazil real 5.1704 0.05 Brazil real 5.1704 0.05 Brazil real 5.1704 0.05 Brazil real 5.1704 0.05
Mexico’s peso is now trading at 20.0467 -1.00.
Chilean peso: 749.4 pesos -0.88 pesos
3819.2 pesos -0.03% Colombian peso
3.976 -0.56 -0.56 -0.56 -0.56 -0.56 –
Argentina’s peso is now trading at 96.1200 -0.02. (interbank)
(Ambar Warrick contributed reporting; Paul Simao and Dan Grebler edited the piece.)/n
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