LatAm stocks slip as dollar strength dents risk appetite; FX mixed
EWZ•Latin American stocks fell 0.36% and currencies edged down 0.37% as a stronger U.S. dollar and rising Treasury yields weighed on risk appetite. Brazil posted a primary deficit of 13.585 billion reais in August, while Colombian authorities held talks with the IMF about possible financing, sources said.
1. Regional markets decline
Most Latin American stocks fell on Tuesday, while currencies were mixed after sharp losses in the previous session. The MSCI Latin American stock index dropped 0.36%, and its currency index fell 0.37% to its lowest since July 9, as a stronger U.S. dollar and rising Treasury yields outweighed support from firmer metal prices.
2. Brazil and Colombia
Brazil's government posted a primary deficit of 13.585 billion reais in August, narrower than the 14.40 billion reais economists expected. Loan defaults in Brazil hit a record high that month, central bank data showed. In Colombia, authorities have held talks with the IMF in recent weeks about possible financing, sources said; the peso rose 1%.
