LatAm assets buoyed by easing crude prices; Brazil in focus
EWZ•Latin American stocks and currencies edged higher as crude prices eased, while Brazil’s real rose 0.3% after Flavio Bolsonaro’s better-than-expected first-round election result. Morgan Stanley upgraded Brazilian equities to overweight.
1. Regional markets rise
Latin American currencies and stocks edged higher as easing crude prices offered some relief. MSCI’s Latin American equities index rose 0.1%, briefly reaching its highest level since mid-September 2014, while its local-currency gauge gained 0.3% and temporarily traded at record highs.
2. Brazil in focus
The Brazilian real firmed 0.3%, following a 4.4% jump in the previous session. Two right-wing politicians who ran against Flavio Bolsonaro in the first round endorsed him ahead of his runoff against President Luiz Inacio Lula da Silva later this month. Morgan Stanley upgraded Brazil’s equities to overweight.
3. Mixed moves elsewhere
Mexico’s peso rose 0.5%, while Chile’s peso and Peru’s sol gained 0.1% and 0.4%, tracking higher copper prices. Colombia’s peso slipped 0.2% as oil prices weakened. Shell CEO Wael Sawan said the company sees a competitive advantage in Venezuelan gas rather than heavy oil.
