LatAm stocks slip as dollar strength dents risk appetite
Most Latin American stocks fell and regional currencies were mixed as a firmer US dollar and higher Treasury yields outweighed support from metal prices. Brazil posted a smaller-than-expected August primary deficit, while Colombia held IMF financing talks, sources said.
6 billion primary deficit in August Colombia holds IMF financing talks as fiscal strain mounts, sources say By Utkarsh Hathi Sept 29 (Reuters) — Most Latin American stocks fell on Tuesday, while currencies were mixed after sharp declines in the previous session, as a stronger US dollar and rising Treasury yields outweighed support from firmer metal prices. 7%, surrendering early gains, after Saudi Arabia resumed loading oil from its Red Sea port of Yanbu, easing immediate concerns over energy supplies. O/R Even so, the US dollar was firm at a two-month high, as oil remained above $100 a barrel, with elevated Treasury yields providing additional support. 36%.
5%, in tandem with a dip in crude prices. 36%, while the high-yielding real was little changed after sharp losses in the previous session. Loan defaults in the region's largest economy hit a record high in August, central bank data showed on Tuesday. 40 billion reais expected by economists in a Reuters poll.
Concerns over Brazil's public finances and rising living costs remain in focus ahead of Sunday's first-round voting for the presidential election, with incumbent President Luiz Inacio Lula da Silva in a tight race with Senator Flavio Bolsonaro. "If Brazil can show a focus on reining in that spending, under either a Bolsonaro or a Lula victory, it would be a welcome by the market," said Rohit Chopra, portfolio manager at Lazard Asset Management. Fiscal concerns are also intensifying in Colombia, where sources said authorities have held talks with the International Monetary Fund in recent weeks on possible financing.
The country's fiscal challenges have deepened following the recent earthquake. The Colombian peso rose 1%. The currency has given up some of its gains in recent weeks, which were driven by strong momentum following President Abelardo De La Espriella's election victory in June. Investors are also awaiting the Colombian central bank's rate decision later this week, with policymakers expected to leave borrowing costs unchanged.
2%. 26%, supported by gold prices, which recovered after hitting a seven-week low on Monday. com)