Brazilians go to the polls on Sunday in a divisive election, following a campaign in which left-wing former President Luiz Inacio Lula Da Silva has a considerable lead over incumbent Jair Bolsonaro, according to the latest polls.
The volatility stemming from Brazil’s presidential election, the first round of which will be held this weekend, presents limited risk to “well-positioned” companies in the South American nation.the credit rating agency Fitch Ratings said on Monday.
For its part, the rest of the currency and stock markets in Latin America also exhibited significant devaluations this Monday, because the higher overall risk aversion by the winds of recession they pushed investors to migrate towards the favorite safe-haven asset, the dollar.
Agents’ attention will be focused on the signals that result from upcoming interventions by Federal Reserve officials about what comes after the 75 basis point increase in interest rates by the agency last week.
The Fed’s decision was accompanied by its peers in the United Kingdom, Sweden, Switzerland, Norway and Taiwan, which also increased the benchmark cost of money.
“These events generated greater fear of a global recession, which triggers an outflow of risk assets towards liquidity, sharp falls in raw materials, especially oil, and a rise in the dollar to levels not seen since 2002,” he said. a Bancolombia report. “It is evident that the (US) Central Bank is willing to destroy some demand in order to bring inflation down to target levels,” he added.
Markets will also pay attention during the week to US consumer confidence data for September on Tuesday; as well as the inflation observed in September of the euro zone and its unemployment rate for August, on Friday.
Price of the dollar in Chile, Monday, September 26
In Chile, the peso ended with a decline of 2.26%, to 992.20/992.50 units per dollar; while the main index of the Santiago Stock Exchange, the IPSA, fell 0.55% to 5,178.75 points.
Price of the dollar in Mexico, Monday, September 26
The Mexican peso fell 1.1% to 20.4018 units per dollar, its lowest level in seven weeks and the main stock index S&P/BMV IPC, which includes the 35 most liquid companies in the local market, fell 1.39% to 44,767.40 points.
Price of the dollar in Colombia, Monday, September 26
In colombia, the peso fell 2.3% to 4,541.60 units per dollarr and the benchmark MSCI COLCAP index lost value by 3.84% to 1,112.84 points.
Price of the dollar in Peru, Monday, September 26
The Peruvian currency the sol, lost 0.72%, to 3.93/3.94 units per dollar. Meanwhile, the reference of the Lima Stock Exchange yielded 1.04%, to 489.47 points.
Source: Ambito
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