Edition:
United States

Ambar Warrick

EMERGING MARKETS-Chile's peso outpaces Latam FX as copper prices spike

3:00pm EST

* Copper prices hit 7-year peak * Real firms for a second day * Mexican peso muted after dismal growth forecast (Adds details, updates prices) By Sruthi Shankar and Ambar Warrick Nov 25 A spike in copper prices saw Chile's peso outperforming Latin American currencies on Wednesday, while most other regional stocks and units continued to grind higher on optimism over a coronavirus vaccine. The peso jumped 1.2% to the dollar and was set for its best day in more than one month. Prices of copper, Chile's top export, reached a seven-year peak on expectations of strong demand from major buyer China. A pickup in Chinese industrial activity has improved the outlook for commodity demand, spurring gains in oil and metal prices. The Colombian peso gained 0.5% as oil prices rose. But gains in oil exporter Mexico's currency were held back after the central bank revised down its outlook for 2021 economic growth, but also tempered its most pessimistic views about growth this year despite the damage from the pandemic. Investors have rushed to riskier emerging market assets in recent weeks after positive data on COVID-19 vaccine efficacy and signs of stability in U.S. politics. But the economic ructions from the outbreak continue to be felt. Growing infection rates in the Americas also raised concerns over possible new lockdown measures to curb the spread of the novel coronavirus. Brazil's real firmed for a second session, rising about 1%after figures showed the country's current account deficit narrowed to its smallest in 2-1/2 years in October, helped by a bigger-than-expected surplus in goods trade. Worries about Brazil's fiscal health, record-low interest rates and a second wave of coronavirus cases have hammered the real this year, but a brighter global mood has boosted the currency by more than 7% in November. "While there has been already very strong positive news flow surrounding the vaccine, we do not believe that the vaccine trade is already done yet," Citi's Dirk Willer said in a note. "Pullbacks, maybe related to month end equity selling, should be seen as a buying opportunity." Stocks in the region edged higher, with Brazil's Bovespa index adding about 0.4%. A Reuters poll showed Brazilian stocks will reach pre-pandemic levels by the middle of next year, but concern about the impact of a resurgent pandemic could limit the recovery. Latin American stock indexes and currencies: Latest Daily % change MSCI Emerging Markets 1218.94 -0.58 MSCI LatAm 2243.12 0.74 Brazil Bovespa 110352.93 0.52 Mexico IPC 42319.68 -0.98 Chile IPSA 4135.16 -1.48 Argentina MerVal 54238.77 0.19 Colombia COLCAP 1264.24 -0.5 Currencies Latest Daily % change Brazil real 5.3212 1.00 Mexico peso 19.9730 0.13 Chile peso 764.4 1.18 Colombia peso 3615.7 0.51 Peru sol 3.603 0.17 Argentina peso 80.7900 -0.11 (interbank) (Reporting by Sruthi Shankar and Ambar Warrick in Bengaluru; editing by Jonathan Oatis and Grant McCool)

British stocks sink after Sunak underscores coronavirus woes

12:04pm EST

British stocks came off vaccine-fuelled highs on Wednesday after Finance Minister Rishi Sunak flagged a major hit to economic growth from the coronavirus, prompting an index of domestically-exposed stocks to mark its worst tumble in nearly a month.

UPDATE 2-British stocks sink after Sunak underscores coronavirus woes

12:01pm EST

* Publisher Future bottoms out midcap index (Updates to close)

EMERGING MARKETS-Brazil's real leads Latam FX gains; stocks rally

Nov 24 2020

* Real adds 0.9% * Mexican, Colombian pesos gain on higher oil prices * Mexican economy to benefit from U.S. reopening- Analyst (Adds details, updates prices) By Ambar Warrick and Sruthi Shankar Nov 24 Brazil's real led gains across Latin American currencies on Tuesday, while stocks rallied after U.S. President Donald Trump cleared the way for a smooth White House transition, adding to recent market optimism about the prospect of COVID-19 vaccines. The real added about 0.9% to the dollar as increased October tax revenues painted an encouraging picture of economic recovery. But the currency has widely underperformed its regional peers this year, due to record-low interest rates, rising coronavirus cases and concerns over surging government debt. Treasury Secretary Bruno Funchal said the government was taking on large quantities of debt, leaving virtually no room to increase fiscal spending. The South American country also has the world's third worst outbreak of the virus, behind only the United States and India. Data showed Brazil's annual rate of inflation accelerated to 4.2% in mid-November, above the central bank's year-end target, lending weight to the recent raising of average interest rate forecasts by economists. Sao Paulo shares jumped to a near nine-month high, while the wider Latin American equities index rose more than 2%, tracking gains on Wall Street. A spike in oil prices spurred gains in the currencies of crude exporters Mexico and Colombia. The Mexican peso rose 0.5% to hold near its strongest levels since early March. The currency has been among the biggest beneficiaries of easing U.S. political uncertainty and news on vaccine breakthroughs this month. "With Mexico’s dominant trading partner– the buyer of roughly 80% of Mexican exports– likely to vaccinate key segments of its population by mid-2021, a rebounding US economy should help to bolster Mexico’s outlook," analysts at TS Lombard wrote in a note. The Trump administration on Monday gave President-elect Joe Biden access to critical resources that will enable him to take the reins of power in January, ending weeks of political uncertainty in Washington and driving the safe-haven dollar down. Meanwhile, Peru said an eager market had soaked up its offer of $4 billion worth of debt, including a rare century bond as it scrambles to raise funds to soften the economic fallout from the coronavirus crisis. Argentine stocks surged more than 5% in catch-up trade, while data showed that economic activity in the country contracted lesser-than-expected in September. Latin American stock indexes and currencies: Latest Daily % change MSCI Emerging Markets 1225.32 0.39 MSCI LatAm 2228.32 2.47 Brazil Bovespa 109810.68 2.26 Mexico IPC 42874.95 1.44 Chile IPSA 4197.36 1.6 Argentina MerVal 54249.10 5.354 Colombia COLCAP 1271.20 1.86 Currencies Latest Daily % change Brazil real 5.3842 0.93 Mexico peso 20.0560 0.53 Chile peso 774 -0.13 Colombia peso 3634 0.32 Peru sol 3.609 -0.14 Argentina peso 80.6800 -0.40 (interbank) (Reporting by Ambar Warrick and Sruthi Shankar in Bengaluru; Editing by Kirsten Donovan and Grant McCool)

London stocks end at multi-month highs on vaccine optimism, commodity gains

Nov 24 2020

Heavyweight commodity stocks pushed London's blue-chip index to a more than five-month closing high on Tuesday, while the midcap index ended at a near nine-month peak as optimism over a coronavirus vaccine increased hopes for a swift economic recovery.

UPDATE 2-London stocks end at multi-month highs on vaccine optimism, commodity gains

Nov 24 2020

* AO World slumps on anticipation of Brexit disruptions (Updates to close)

EMERGING MARKETS-Latam stocks gain on vaccine optimism, FX rally peters out

Nov 23 2020

* Mexican peso at below 20 per dollar for first time since March * Peru preps century bond issue * MSCI Latam stocks index up over 7% in last two weeks (Adds details, updates prices) By Sruthi Shankar and Ambar Warrick Nov 23 Latin American stocks rose on Monday, while currencies retreated from initial gains as progress towards a coronavirus vaccine bolstered hopes for economic activity to return to pre-pandemic levels. Bourses in Brazil, Chile and Mexico rose between 0.8% to 1.4%, tracking a rally in global equities after AstraZeneca said its COVID-19 vaccine, cheaper to make, easier to distribute and faster to scale-up than its rivals, could be as much as 90% effective. Emerging market assets were cheered by the simpler distribution logistics for the vaccine. Countries such as Brazil and India already have supply and manufacturing contracts in place for the vaccine. Positive vaccine news, coupled with the prospect of easy monetary policy for the duration of the pandemic has greatly benefited equities, with the MSCI's index of regional equities adding more than 7% over the past two weeks. But regional currencies came off initial gains as investors were still uncertain about the timing of a vaccine, while the economic ructions from the pandemic continued to show. A resurgence of infections in Brazil - Latam's largest economy - also dulled risk appetite. The real fell about 1%, while the Chilean peso fell more than 1%, tracking a slight decline in copper prices. Losses in the Mexican peso and the Colombian peso were mitigated by strength in oil markets. The Mexican unit fell slightly after briefly trading below 20 to a dollar for the first time since March. Renewed carry trade interest and relatively higher interest rates have seen the peso outperform most of its emerging market peers this year. "The immediate target is MXN19.80," Marc Chandler, chief market strategist at Bannockburn Global Forex told clients in a note. "The high nominal rates (~4.28% on a one-month bill, or cetes) and the broader gains among emerging market currencies appear to be fueling the peso's gains." Peru's sol edged lower as the country prepared a century bond in dollars after authorizing the issuance of debt of up to $4 billion to help rein in the country's coronavirus outbreak and soften its economic impact. The issuance comes days after newly appointed interim President Francisco Sagasti told Reuters that Peru planned to issue bonds in the near term to service the Andean nation's "very high" fiscal deficit. Argentine markets were closed for a holiday. Key Latin American stock indexes and currencies: Latest Daily % change MSCI Emerging Markets 1218.90 0.8 MSCI LatAm 2164.80 0.1 Brazil Bovespa 107178.68 1.07 Mexico IPC 42357.27 1.08 Chile IPSA 4131.91 1.91 Colombia COLCAP 1246.99 0.58 Currencies Latest Daily % change Brazil real 5.4451 -1.09 Mexico peso 20.1343 -0.18 Chile peso 772.7 -1.14 Colombia peso 3645.55 -0.40 Peru sol 3.604 -0.26 (Reporting by Sruthi Shankar in Bengaluru; editing by Emelia Sithole-Matarise and Tom Brown)

AstraZeneca vaccine news drags on FTSE, but mid-caps immune

Nov 23 2020

British stocks rose on optimism over a COVID-19 vaccine on Monday, although gains in the FTSE index were curbed by a fall in shares of AstraZeneca after the drugmaker's candidate was less effective than others in trials.

UPDATE 2-AstraZeneca vaccine news drags on FTSE, but mid-caps immune

Nov 23 2020

* Cineworld jumps on securing additional debt (Updates to close)

EMERGING MARKETS-Mexican peso gains on oil boost; Brazil's real hit by second-wave fears

Nov 20 2020

* Mexico's peso set for third straight week of gains * Brazil's real leads losses for the day * MSCI Latam stock index down 1.1% (Adds details, updates prices) By Shriya Ramakrishnan and Ambar Warrick Nov 20 The Mexican and Colombian pesos led gains across Latin American currencies on Friday thanks to higher crude prices, while Brazil's real was the biggest faller on fears of a second wave of coronavirus infections. Most regional currencies were set for weekly gains as investors viewed progress towards a COVID-19 vaccine as a net positive for sentiment. Mexico's currency, which rose about 0.5% to the dollar, was also set to outpace its regional peers for the week, as the prospects for effective COVID-19 vaccines and hopes that OPEC and its allies will keep production in check lent support to oil prices. The currency recently benefited from the Mexican central bank pausing its rate-cutting cycle. "MXN is a carry story pure and simple. When adjusting for both volatility and liquidity it is still the world's number one carry currency," said Christian Lawrence, senior market Strategist at Rabobank. "Any periods of rising demand for risk will see support for MXN. Domestic fundamentals don't matter at the moment." Colombia's peso rose 0.5%, while Brazil's real led losses for the day, shedding 1.3% against the dollar as fears of a second wave of infections in Latin America's largest economy grew. But the currency was set to gain for the week after the government raised its growth forecast for the year and pledged to fast track reforms to privatisation and fiscal spending. Brazil's government also trimmed its year-end budget deficit forecast thanks to an anticipated reduction in mandatory spending and an increase in revenues. Peru's sol fell 0.5%, but was set to end a volatile week slightly higher as political tensions in the country cooled after the appointment of interim President Francisco Sagasti. A gauge of Latin American stocks fell 1.1% during the day, but was still set to end the week higher. Chile's peso fell 0.5% even as prices of its main export, copper, surged to their highest in 29 months on Friday. Argentina's central bank on Thursday said companies that participate in the country's natural gas production plan will have free access to the official foreign exchange market. The move opens a potential loophole in strict capital controls which have been in place since August last year, aimed at protecting foreign exchange reserves, after the collapse of the peso currency. Key Latin American stock indexes and currencies: Latest Daily % change MSCI Emerging Markets 1208.74 0.69 MSCI LatAm 2159.51 -1.09 Brazil Bovespa 105999.53 -0.63 Mexico IPC 41884.48 0.04 Chile IPSA 4054.32 0.65 Argentina MerVal 51156.96 0.406 Colombia COLCAP 1230.70 -0.01 Currencies Latest Daily % change Brazil real 5.3791 -1.25 Mexico peso 20.0770 0.51 Chile peso 762.9 -0.52 Colombia peso 3630.95 0.47 Peru sol 3.5947 -0.53 Argentina peso 80.3500 -0.09 (interbank) (Reporting by Shriya Ramakrishnan in Bengaluru; Editing by Kirsten Donovan)

World News