EMERGING MARKETS-LatAm stocks head for longest losing streak since 2019

Brazil's Bovespa `.BVSP` dipped 0.16% while the real `BRL=` was trading 0.10% lower. The regional heavyweight's economy was "rapidly losing momentum," said Liam Peach, senior emerging markets economist at Capital Economics. "We're becoming increasingly confident that disinflation will continue and that the central bank will be able to deliver more interest rate cuts than investors currently expect next year," he said. Stocks in Colombia `.COLCAP` rose 0.27%, extending their strong run this week as investors ramped up bets that the new administration under President Abelardo De La Espriella would be able to restore confidence in the economy. Mexican equities `.MXX` climbed 0.38%. "The trend of nearshoring, particularly in Mexico, remains a theme that is very much playing out," said Bill Mann, chief investment strategist at Motley Fool Asset Management. Nearshoring refers to companies moving production and supply chains to countries closer to their main markets. Peruvian equities `.MXNUAMPESCPGPE` rose 0.19%, while the Peru sol `PEN=` gained 0.57% versus the dollar. "Peru's external backdrop has strengthened dramatically on the back of the rally in gold and copper," BofA said. Investors were also parsing the latest U.S. inflation print, which showed that consumer prices barely increased in July. Later in the day, MSCI will announce the results of a quarterly rebalance of its indexes. Latin American stocks were on track for their ninth consecutive day in the red, which would mark their longest losing streak since 2019 as oil prices dipped and investors weighed the latest inflation data in the United States. The MSCI index of Latin American stocks `.MILA00000PUS` dipped 0.49% on Wednesday, while the corresponding gauge of regional currencies `.MILA00000CUS` slipped 0.22%. Investors seeking exposure outside the U.S. have mostly turned to technology-focused bourses in Asia, such as South Korea and Taiwan, leaving Latin America behind as a destination for diversification flows. "We continue to see outflows from LatAm-dedicated global funds. Investors continue to rotate into tech-heavy emerging markets," BofA Global strategists wrote. For many foreign investors, LatAm assets have increasingly served as a hedge rather than a core allocation. But uncertainty over oil demand is undermining that role, as several regional economies rely significantly on oil exports. In its monthly report, the Organization of the Petroleum Exporting Countries lowered its world oil demand growth forecast for 2026.

EMERGING MARKETS-LatAm stocks head for longest losing streak since 2019

Brazil, Colombia, Mexico and Peru moves

U.S. inflation data and MSCI rebalance ahead

LatAm stocks track ninth straight loss as oil weakens

Related News

BofA to invest $1.9 billion for 49.9% stake in Jio Financial NBFC unit

UTG Q2 FY26 net income returns to profit at $6.34 million; revenue rises 309.43% to $13.9 million

Home BancShares director Jim Rankin disposes of 15,000 shares worth $462,966.00

Table Trac Q2 system revenue surges on new system installations

Princess Cruises returns as official participant in Rose Parade with destination-themed float