top of page


Public·7 members

Amid Plummeting Stocks And Political Uncertainty, VCs Urge Their Portfolios To Prepare For Winter

* Real to lose around 5% for the week * Colombia's peso the sole weekly gainer * Argentine stocks set for worst week in nearly two months (Adds comment, updates prices) By Ambar Warrick and Susan Mathew June 19 (Reuters) - Latin American stocks and currencies ticked up on Friday, with most currencies set for steep weekly losses as political ructions and fears of the coronavirus pushed money into safe havens. Brazil's real, which was up around 1.4% for the day, underperformed its peers by a wide margin for the week, with a weekly loss of around 5%. A string of weak economic data and political uncertainty pressured the currency through the week, with the Brazilian central bank signaling more potential rate cuts, prompting a strong sell-off on Thursday. Fears of a second wave of COVID-19 infections in major economies affected emerging market currencies through the week, with Latin American currencies bearing a bulk of the selling as cases in the region spiked. "Whether or not the market wants to deal with it, COVID is a theme that is likely to stick with us for quite some time. Besides the obvious, it's worse than the trade war theme of 2019, reflecting a new and more profound level of uncertainty," wrote Mark McCormick, global head of FX strategy at TD Securities. Mexico's peso and Colombia's peso both rose, tracking stronger oil prices as OPEC producers and allies promised to meet supply cuts, while demand appeared to be improving in major economies. Still, U.S. sanctions on certain Mexican companies saw Mexico's peso set to lose about 1.6% for the week, while Colombia's peso was the sole Latam currency set for a weekly gain. Meanwhile, equities rose, with the MSCI's index of regional stocks adding 0.8%. Monetary support in major economies such as the United States and Japan inspired some confidence in equities this week, with most regional bourses set to end the week higher. Argentine stocks, however, were set for their worst week in three months amid hiccups in talks between the government and creditors to restructure the country's $65 billion debt. Most analysts expect the two sides to find a way to bridge the divide. For the upcoming week, June's mid-month inflation data from Brazil and a central bank interest rate meeting in Mexico will be eyed. Monex Europe's FX market analyst Olivia Alvarez Mendez expects a 50-basis-point cut given the comfortable inflation outlook in Mexico, and expects the central bank to remain in a cautious yet accommodative stance compared with other major central banks as the country faces its worst recession in decades. Key Latin American stock indexes and currencies 1915 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1001.80 0.67 MSCI LatAm 1955.21 1.45 Brazil Bovespa 96474.32 0.36 Mexico IPC 38295.13 1.76 Chile IPSA 4021.27 0.76 Argentina MerVal 39935.16 5.119 Colombia COLCAP 1144.49 0.48 Currencies Latest Daily % change Brazil real 5.2959 1.40 Mexico peso 22.5837 0.70 Chile peso 815.4 0.05 Colombia peso 3745.32 -0.04 Peru sol 3.5008 0.57 Argentina peso 69.7900 -0.07 (interbank) (Reporting by Ambar Warrick in Bengaluru; editing by Jonathan Oatis)

Amid plummeting stocks and political uncertainty, VCs urge their portfolios to prepare for winter


Welcome to the group! You can connect with other members, ge...
Group Page: Groups_SingleGroup
bottom of page