LatAm assets drop on higher oil prices, fiscal concerns
ILF•Latin American stocks fell 1% and currencies weakened 0.4% as oil prices and fiscal concerns weighed on regional markets. Colombian, Mexican and Argentine bonds also declined.
1. Regional markets retreat
Indexes tracking Latin American stocks and currencies fell 1% and 0.4%, respectively, as investors moved to the safe-haven dollar. Oil prices near $100 a barrel, inflation concerns and fiscal worries weighed on sentiment.
2. Bonds and policy moves
Colombian, Mexican and Argentine bonds declined. Colombia’s newly inaugurated government revoked a decree capping private pension funds’ foreign investments at 30%.
