Latin American markets dip as investors parse policy signals and oil rebound
SPY•Most Latin American stocks and currencies edged lower as investors weighed regional central bank signals and a rebound in oil prices. Brazil’s real rose 0.2% after its central bank paused rate cuts, while Colombia raised its 2026 inflation forecast to 7.1% and lowered its growth outlook.
1. Regional markets slip
Most Latin American stocks and currencies edged lower on Thursday as investors assessed central bank signals, rising oil prices and the implications of Republican losses in US midterm elections. MSCI’s regional equity gauge fell 0.3%, and the broader currency index declined 0.1%.
2. Mexico and Brazil
The Mexican peso extended gains ahead of Banxico’s policy decision, with the central bank widely expected to hold its key rate at 6.50%. Mexican shares rose 0.3%. Brazil’s real gained 0.2% after the central bank paused its easing cycle, citing higher inflation risks, and removed language indicating further cuts were likely. Brazilian industrial output fell more than expected in September.
3. Colombia outlook
Colombia’s central bank lowered its 2026 growth forecast and raised its inflation forecast for this year to 7.1% from 6.9%. Colombia’s stock index fell 0.3% and the peso dropped 0.4%; Chile’s peso and Peru’s sol also weakened.
