Latin American markets rise after digesting comments from Fed chief and rate hike in Europe

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Most Latin American markets were trading higher in the early hours of Thursday, as traders weigh comments from the chairman of the US Federal Reserve and the rise in interest rates in Europe, in amidst global economic concerns.

  • The region’s currencies initially benefited from rising oil prices after Russia threatened to halt crude and gas exports to some buyers.
  • The day was framed between the decision of the European Central Bank to raise its interest rates by an unprecedented amount of 75 basis points and leave the door open to further increases.
  • From the United States, the president of the Federal Reserve, Jerome Powell, said that the agency is “strongly committed” to controlling inflation, but remains hopeful that it can be achieved without “very high social costs.”
  • The exception to the regional trend was the Mexican peso, which depreciated 0.34% to 20.0310 units per dollar, while the main stock index S&P/BMV IPC added 0.09% to 46,098, 48 points.
  • In Brazil, the real strengthened 0.52% to 5.2206 per dollar and the Bovespa stock index gained 0.16% to 109,937.09 points.
  • The Chilean peso rose 0.37% to 881.20/881.50 units per dollar, favored by an advance in the price of copper , the country’s main export, and by the daily injection of foreign currency made by the Central Bank .
  • Likewise, the main index of the Santiago stock market, the IPSA, gained 0.45% to 5,565.84 points.
  • Earlier, the Government reported that inflation in Chile registered a 12-month rise of 14.1%, well above market expectations and the Central Bank’s tolerance range of between 2.0 and 4. 0%.
  • The Colombian peso rose 0.17% to 4,393.01 units per dollar, in its fourth session on the rise; while in the stock market the benchmark MSCI COLCAP index fell 0.62% to 1,202.76 points.
  • The Peruvian currency, the sol, gained 0.23% to 3.876/3.879 units per dollar. Meanwhile, the reference of the Lima Stock Exchange added 0.30%, to 500.03 points.
  • In Argentina, the peso fell 0.34% to 141.30 units per dollar and the leading Argentine index S&P Merval advanced 1.3% to 142,852.16 points, due to the optimism generated by the calm exchange rate as a result of the recovery of the reserves of the central bank (BCRA), which encourages purchases of export-oriented shares.
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Quotes at 1516 GMT

Indices Price Var pct Var pct

daily shares in the year

MSCI Emerging Markets

956.51 -22.46

-0.9

MSCI Latin America

2,131.44 1.77

-0.03

Bovespa Brazil

110,076.95 5.0128

0.29

CPI Mexico

46,159.52 -13.35

0.22

Argentina MerVal

141,180.54 69.08

0.127

COLCAP Colombia

1,198.42 -15.01

-0.98

IPSA Chile

5,572.76 29.36

0.58

Selective Peru

500.69 -2.28

0.43

Dollar against Price Var pct Var pct

to coins monthly in the year

Brazilian real

5.2100 6.91

-0.52

Mexican peso

20.0180 2.39

0.60

Chilean peso

883.0 -3.41

1.62

Colombian peso

4,386 -7.17

0.84

peruvian sol

3.8680 +3.12

-0.42

Argentine peso

141.13 -27.25

-1.72

-7.17

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