LatAm markets gain as weaker oil and dollar lift risk appetite
SPY•Most Latin American currencies and stocks gained on Monday as a weaker dollar and a more than 7% drop in oil supported risk appetite. MSCI’s Latin American currency index rose 0.32% and its regional equities index gained 0.54%.
1. Regional markets advance
Most Latin American currencies and stocks rose, although trading was subdued with markets in Brazil, Colombia and Mexico closed for public holidays. The region’s currency index gained 0.32% and equities index rose 0.54%, marking a modest recovery after steep losses last month.
2. Country moves and data
Chile’s equities rose 1.2% and the peso gained 1.6% to a two-week high, while September economic activity increased 0.2% year on year, above forecasts. Peruvian stocks climbed 0.8% and the sol strengthened 0.14%; consumer prices rose 0.57% in October, the largest monthly increase for that month in more than four years. Argentina’s peso weakened 0.7%, while Mexico’s peso gained more than 1%.
3. Investors weigh outlook
Oil prices fell more than 7% and the dollar slipped 0.3% against a basket of major currencies. Investors were also watching upcoming central bank decisions in Brazil and Mexico, Peru’s policy meeting next week, and the US midterm elections. Citi analysts said persistent El Niño and the risk of worsening weather disruptions through the first quarter of 2027 make Peru’s central bank pause at 4.25% increasingly difficult to justify.
