Latam shares gain, FX mixed as investors weigh Mexico, Brazil data
SPY•Most Latin American stocks rose on Monday, while currencies were mixed as investors assessed regional data and metals rebounded. Mexico’s annual headline inflation accelerated to 3.75% in October, while Brazil’s IGP-DI inflation slowed to 1.15%.
1. Regional markets move
The MSCI Latin American equities index gained 0.9%, while the regional currency index was flat. Mexican equities rose 0.9% and Brazil’s Bovespa gained 0.8%; the Brazilian real fell 0.2%.
2. Inflation and commodities
Mexico’s headline inflation accelerated to 3.75% year-on-year in October, above expectations of 3.65%, and core inflation reached 3.80%. Brazil’s IGP-DI price index rose 1.15%, slowing from 1.50% in September. Oil fell nearly 5%, while gold rose 1% and copper rebounded; the Peruvian sol and Chilean peso gained as their key export metals rose.
3. Other regional developments
Investors awaited Colombia’s consumer inflation data, and the Colombian peso fell 0.9%. In Paraguay, President Pedro Alliana nominated economist Jorge Schreiner to head the central bank following the intervention in digital bank ueno.
