ILF•In Chile, the peso CLP= inched higher 0.2% after touching its lowest level in 11 months on Tuesday.
Key Latin American stock indexes and currencies at 1421 GMT:
| Latin American market prices from Reuters | ||
| Equities | Latest | Daily % change |
MSCI Emerging Markets .MSCIEF | 1682.02 | -0.93 |
MSCI LatAm .MILA00000PUS | 3115.96 | 0.20 |
Brazil Bovespa .BVSP | 185902.11 | 0.22 |
Mexico IPC .MXX | 63988.82 | -0.36 |
Chile IPSA .SPIPSA | No data | No data |
Argentina Merval .MERV | 3086461.42 | 0.062 |
Colombia COLCAP .COLCAP | 2581.15 | -0.27 |
| Currencies | Latest | Daily % change |
Brazil real BRL= | 5.1472 | 0.06 |
Mexico peso MXN= | 17.132 | 0.01 |
Chile peso CLP= | 954.22 | 0.23 |
Colombia peso COP= | 3097 | 0.19 |
Peru sol PEN= | 3.3729 | -0.43 |
Argentina peso (interbank) ARS=RASL | 1506 | 0.13 |
Argentina peso (parallel) ARSB= | 1540 | 0.97 |
Political updates remained in the spotlight in the region's largest economy, Brazil.
According to a CNT/MDA poll released on Tuesday, Brazilian President Luiz Inacio Lula da Silva would beat right-wing Senator Flavio Bolsonaro if they were in a second-round runoff in next month's election.
This follows a host of other surveys pointing to a tight presidential race ahead of the October election, with markets closely tracking shifts in political sentiment.
Investors consider Senator Bolsonaro market friendly and assets have tended to rally when his chances improve, and vice versa.
The Brazilian benchmark stocks index .BVSP inched higher 0.2% after falling 0.9% on Monday. The real BRL= firmed.
Meanwhile, Brazil's retail sales fell more than expected in July, data from statistics agency IBGE showed, underscoring the drag of high borrowing costs on consumer spending.
"High borrowing costs are weighing most heavily on discretionary and durable purchases, while resilient employment and real-income growth continue to provide some support to essential spending," said Andrés Abadía, chief Latin America economist at Pantheon Macroeconomics.
Investor focus will also turn to the Brazilian Central Bank monetary policy committee (Copom) rate decision on Wednesday, where it is expected to ease interest rates to 13.75% from 14.00%, according to a Reuters poll.
Elsewhere, oil prices rose on Tuesday after attacks on Saudi Arabian energy infrastructure left the kingdom's East-West Pipeline offline.
Elevated energy prices have supported assets among the net oil exporters in the region, though prolonged strength in crude prices continue to fan inflationary fears and push global bond yields to multi-year highs as central banks globally are gearing up for a higher-rate environment.
Markets will also pay close attention to the Federal Reserve's interest rate decision on Wednesday where it is expected to hike rates by 25 basis points, according to CME's FedWatch Tool.
Back in Latin America, Colombia's budget remained in focus.
Colombia's Congress on Monday approved the government's 2027 spending budget of 634.9 trillion pesos ($206.6 billion), amid a sharp deterioration in public finances that is expected to push the fiscal deficit to a record high next year.
The approval comes despite warnings from the country's fiscal watchdog of a critical fiscal outlook if the plan went through.
Colombian stocks .COLCAP eased 0.3%, while the peso COP= strengthened 0.2%.
The country recently inaugurated government of right-wing President Abelardo De La Espriella and has been grappling with worsening public finances inherited from previous administrations.
Sept. 15 (Reuters) - Most Latin American assets recovered on Tuesday after a sell-off in the previous session, while global sentiment was kept in check by surging oil prices and bond yields ahead of the U.S. Federal Reserve's policy decision later this week.
MSCI's index tracking LatAm stocks .MILA00000PUS gained 0.2%, while a corresponding currencies gauge .MILA00000CUS edged higher 0.3%.
