(Updated at 1605 GMT) * Polish c.bank surprisingly holds rates steady, zloty jumps * Chilean peso leads FX declines * Chile's inflation cools in Oct * Stocks, FX down 0.3% each By Siddarth S Nov 8 (Reuters) - Commodity-rich South America's currencies and stocks slipped in tandem on Wednesday as oil and copper prices declined, while the zloty jumped after the Polish central bank surprisingly kept interest rates unchanged. MSCI's gauge for Latin American currencies and equities fell 0.3% each by 1605 GMT. Among copper-producing nations, Chile's peso dropped 1.4%, leading declines in Latam FX, and the Peruvian sol slipped 0.2% against the dollar, tracking lower copper prices. Chile's consumer prices rose 0.4% in October, slightly below market forecasts of 0.5%, and providing justification for the central bank's decision last month to cut interest rates. "Chile’s inflation continues to move in the right direction, but the central bank has made clear that the peso is a critical policy variable and will not want to undermine its recent recovery with any large rate cuts," said Chris Turner, global head of markets and regional head of research for UK & CEE at ING. Mexican shares rose 0.3% ahead of a crucial interest rate decision on Thursday where the Bank of Mexico, widely known as Banxico, is expected to hold its benchmark interest rate at 11.25% for the fifth consecutive time. "Tough global conditions prompted Chile to opt for a smaller rate cut a couple of weeks ago and we doubt Banxico will be rushed into early easing anytime soon," Turner added. Oil exporter Colombia saw its peso fall 1.4% as oil prices slid on demand concerns, while the benchmark stock index rose 0.5%. A hawkish tone from U.S. Federal Reserve policymakers on Tuesday unearthed some fresh concerns on further rate hikes; however, Fed Chair Jerome Powell did not comment on monetary policy or the economic outlook for the U.S. in remarks on Wednesday. Fresh from last week's decision to hold the policy rate steady, Fed policymakers are weighing strong economic data and the impact of higher long-term bond yields as they consider whether they will need to hike rates further to bring down inflation. The spotlight was on Central and Eastern Europe as the Polish zloty jumped 0.4% against the euro after the country central's bank unexpectedly left its main interest rate on hold at 5.75%, pausing its easing cycle. Analysts polled by Reuters had expected a 25 basis point cut. Romania's central bank held its benchmark interest rate at 7.00%, as expected, with the leu last seen flat. Elsewhere, Mexican President Andres Manuel Lopez Obrador said on Wednesday the minimum wage hike that will be agreed for 2024 will be "considerable." Key Latin American stock indexes and currencies at 1605 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 958.28 -0.25 MSCI LatAm 2354.51 -0.31 Brazil Bovespa 119328.08 0.05 Mexico IPC 51347.85 0.27 Chile IPSA 5652.58 0.03 Argentina MerVal 599976.16 -1.838 Colombia COLCAP 1098.83 0.47 Currencies Latest Daily % change Brazil real 4.8887 -0.34 Mexico peso 17.4730 -0.01 Chile peso 896.7 -1.39 Colombia peso 4047.26 -0.97 Peru sol 3.797 -0.81 Argentina peso 350.0000 0.01 (interbank) Argentina peso 865 2.89 (parallel) (Reporting by Siddarth S in Bengaluru; Editing by Andrea Ricci)
S&P GSCI Copper Index 2
Index
Real-time USA 10:19:00 2024-05-23 am EDT | 5-day change | 1st Jan Change | ||
735.3 PTS | -0.05% | +1.86% | +21.64% |
01:13pm | Copper dips for third straight day on profit-taking, weak demand | RE |
12:02pm | Analysis-How can Milei unlock Argentina's copper riches? Fix the economy | RE |
Stocks mentioned in the article
Price
|
Change
|
5d. change
|
Capi.
| ||
---|---|---|---|---|---|
1,562,849 PTS | -1.15% | +56.28% | - | ||
124,844 PTS | -0.64% | -2.59% | - | ||
56,432 PTS | -0.58% | -1.40% | - | ||
9,435 PTS | -4.61% | -1.44% | - | ||
2,422 USD | -0.72% | -2.15% | - | ||
1,092 USD | -0.28% | +1.33% | - | ||
964.8 ARS | +0.23% | +0.13% | - | ||
890 ARS | +0.06% | +0.51% | - | ||
554.8 PTS | +0.14% | +0.50% | - | ||
384.5 PTS | -0.01% | +0.19% | - | ||
82.54 USD | +1.08% | -0.46% | - | ||
78.15 USD | +1.35% | -1.09% | - | ||
37.5 BRL | -3.19% | +0.46% | 95.53B | ||
7.41 BRL | +3.35% | -2.37% | 1.17B | ||
5.571 BRL | -0.16% | -0.36% | - | ||
4.264 PLN | -0.02% | +0.05% | - | ||
3.934 PLN | -0.13% | +0.55% | - | ||
1.271 USD | -0.07% | +0.22% | - | ||
1.173 EUR | -0.14% | +0.70% | - | ||
1.083 USD | +0.06% | -0.46% | - | ||
0.9228 EUR | -0.10% | +0.48% | - | ||
0.7305 USD | +0.01% | -0.64% | - | ||
0.6742 EUR | -0.09% | -0.16% | - | ||
0.6627 USD | +0.14% | -1.06% | - | ||
0.6115 EUR | +0.04% | -0.57% | - | ||
0.6108 USD | +0.15% | -0.31% | - | ||
0.012 USD | +0.02% | 0.00% | - | ||
0.0111 EUR | -0.04% | +0.91% | - | ||
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