LatAm stocks muted as investors assess inflation data, oil prices; Mexican peso slides
SPY•Latin American stocks edged higher as investors weighed regional inflation data against rising oil prices; Mexico’s peso fell 1.3% after central bank meeting minutes indicated three of five board members supported possible rate cuts if inflation improves.
1. Markets and currencies
Latin American stocks edged higher on Thursday, while currencies were broadly flat to higher. The regional equities gauge rose 0.13%; Brazil’s Bovespa gained 1.04% and Mexico’s IPC rose 0.57%, while Colombia’s COLCAP fell 0.16%.
2. Peso weakens
Mexico’s peso fell 1.3%, its biggest one-day drop in a week, after central bank minutes showed three of five governing board members favored future rate cuts if the inflation outlook improves. Annual inflation in Mexico and Colombia rose at a faster pace in September than in August.
3. Oil and regional factors
Brent crude rose more than 4% amid supply constraints, while concerns about energy-driven inflation and interest costs weighed on global bonds. Chile’s peso gained 0.2% after consumer prices rose slightly less than economists had expected; Peru’s central bank unexpectedly held its benchmark rate at 4.25% on Wednesday.
