LatAm assets buoyed by retreating dollar, oil; Brazil in focus
EWZ•Latin American stocks rose 0.51% and currencies gained 0.3% as the dollar declined and oil prices retreated. Brazil’s real strengthened 0.31% after Flavio Bolsonaro secured endorsements from two right-wing rivals ahead of the election runoff.
1. Regional markets rise
MSCI’s Latin American equities index gained 0.51%, briefly reaching its highest level since mid-September 2014, while its gauge for local currencies rose 0.3% and temporarily traded at a record high. Brent crude retreated to around $100 a barrel.
2. Brazil election focus
The Brazilian real firmed 0.31%, following a 4.4% jump in the previous session, while the Bovespa dipped 0.34%. Ronaldo Caiado and Romeu Zema endorsed Flavio Bolsonaro ahead of his runoff against President Luiz Inácio Lula da Silva later this month. Morgan Stanley and JPMorgan upgraded Brazilian equities to overweight.
3. Other regional moves
Mexico’s peso gained 0.63%, Chile’s peso fell 0.2%, Peru’s sol rose 0.2% and Colombia’s peso slipped 0.9%. Chile’s government cut its economic growth forecast for the year and slightly raised its inflation outlook.
