Latam FX poised for weekly losses, Sri Lankan bonds jump
Fitch unlikely to raise Brazil's credit rating soon- director
Mexico's top court accepts constitutional challenge to judicial overhaul
IMF, Ghana reach staff-level deal on $3 billion loan-programme review
Romanian holds benchmark interest rate steady
Latam FX up 0.6%, stocks up 1.1%
By Ankika Biswas
Oct 4 (Reuters) -An index for Latin American currencies was set for its first weekly decline in five on Friday, as fears of an escalation in Middle East tensions dampened risk sentiment, while Sri Lanka's dollar-denominated bond prices jumped by around 2 cents on support for its debt restructuring.
The MSCI Latam currencies index .MILA00000CUS nudged lower on the week as a flight to safe-haven assets boosted the U.S. dollar, which was trading at a seven-week high also supported by a surge in U.S. jobs growth.
With the jobs report sparking a debate on whether upcoming U.S. rate cuts could be smaller, Bank of America analyst Aditya Bhave now expects 25 basis point cuts at each meeting until March 2025, and then 25 bps per quarter until end-2025.
The currencies index had risen for the past four weeks, on optimism around the Federal Reserve's eventual 50 bp interest-rate cut, with China's recent set of stimulus measures also boosting sentiment towards emerging market stocks and currencies.
A 0.6% intraday rise for the FX index helped contain the weekly loss. The Mexican peso MXN= led the pack, strengthening 0.7% against the dollar.
Mexico's Supreme Court agreed to consider a constitutional challenge to a controversial judicial overhaul that will move the country over the next few years to a system of popularly elected judges.
Brazil's real BRL= edged up 0.1% against the dollar, while Chile's peso CLP= and Peru's sol PEN= were down around 0.4% each.
Fitch is unlikely to upgrade Brazil's credit rating in the near-term, despite its better-than-expected economic growth, because of doubts the country will be able to significantly improve public finances, a director in its sovereign ratings group said.
Brazil's government published an executive order that effectively rolls out a minimum 15% tax on the profits of multinational corporations. This comes as it seeks new revenue sources to meet fiscal targets including reducing the fiscal deficit to zero, while being loath to adopt broad spending cuts.
Elsewhere, Sri Lanka's $12.5 billion bondholder debt rework received support from bilateral creditors and the International Monetary Fund, a huge boost to the nation's fragile economy.
The country's short-dated dollar-denominated bonds maturing in 2029 USY8137FAP37=TE saw the biggest price jump, up 2.9 cents on the dollar to be bid at 58.37 cents, Tradeweb data showed.
Maturities such as the 2030 US85227SBB16=TE and 2027 US85227SAT33=TE bonds were also up more than 2 cents.
IMF staff and officials in Ghana reached an agreement on their third review of the West African country's $3 billion IMF loan program.
In Europe, Romania held its benchmark interest rate at 6.50%, after two consecutive cuts, expecting inflation's downward path to be more erratic and as uncertainty remains high ahead of elections.
HIGHLIGHTS:
** South Africa sells 1 billion rand of inflation-linked bonds at auction
** Polish rate-setters point to energy prices as reason for CPI rise, minutes show
** Goldman sees later Turkey rate cut, higher year-end inflation
Key Latin American stock indexes and currencies at 1443 GMT:
Equities | Latest | Daily % change |
MSCI Emerging Markets .MSCIEF | 1175.26 | 0.19 |
MSCI LatAm .MILA00000PUS | 2235.54 | 1.13 |
Brazil Bovespa .BVSP | 131637.3 | -0.03 |
Mexico IPC .MXX | 52169.78 | 0.96 |
Chile IPSA .SPIPSA | 6443.36 | 0.84 |
Argentina Merval .MERV | 1754992.39 | 0 |
Colombia COLCAP .COLCAP | 1307.02 | 0.29 |
Currencies | Latest | Daily % change |
Brazil real BRL= | 5.4686 | 0.13 |
Mexico peso MXN= | 19.2109 | 0.67 |
Chile peso CLP= | 924.1 | -0.45 |
Colombia peso COP= | 4181.57 | 0.02 |
Peru sol PEN= | 3.733 | -0.36 |
Argentina peso (interbank) ARS=RASL | 971.5 | 0.05 |
Argentina peso (parallel) ARSB= | 1185 | 2.53 |
Reporting by Ankika Biswas in Bengaluru; Editing by Kirsten Donovan
Aset Terkait
Berita Terbaru
Pengungkapan: Entitas XM Group menyediakan layanan khusus eksekusi dan akses ke Fasilitas Trading Online kami, yang memungkinkan Anda untuk melihat dan/atau menggunakan konten yang tersedia pada atau melalui situs, yang tidak untuk mengubah atau memperluas, serta tidak mengubah atau memperluas hal tersebut. Akses dan penggunaan ini selalu sesuai dengan: (i) Syarat dan Ketentuan; (ii) Peringatan Risiko; dan (iii) Pengungkapan Penuh. Oleh karena itu, konten disediakan hanya sebagai informasi umum. Anda juga harus ketahui bahwa konten Fasilitas Trading Online kami bukan sebagai ajakan atau tawaran untuk untuk melakukan transaksi apa pun di pasar finansial. Trading di pasar finansial mana pun melibatkan tingkat risiko yang signifikan pada modal Anda.
Semua materi yang diterbitkan di Fasilitas Trading Online kami hanya untuk tujuan edukasi/informasi dan tidak boleh mengandung nasihat dan rekomendasi finansial, pajak investasi atau trading, catatan harga trading kami, penawaran, permintaan, transaksi dalam instrumen finansial apa pun atau promo finansial untuk Anda yang tidak diminta.
Konten pihak ketiga apa pun, serta konten yang disiapkan oleh XM, seperti opini, berita, riset, analisis, harga, informasi lain atau link ke situs pihak ketiga yang tersedia "sebagaimana adanya", sebagai komentar pasar umum dan bukan menjadi nasihat investasi. Sejauh konten apa pun ditafsirkan sebagai penelitian investasi, Anda harus memperhatikan dan menerima bahwa konten tersebut tidak dimaksudkan dan belum disiapkan sesuai dengan persyaratan hukum yang dirancang untuk mempromosikan kemandirian riset investasi dan dengan demikian akan dianggap sebagai komunikasi pemasaran di bawah hukum dan peraturan yang relevan. Mohon dipastikan bahwa Anda telah membaca dan memahami Notifikasi pada Riset Investasi Non-Independen dan Peringatan Risiko kami mengenai informasi di atas, yang dapat diakses disini.
