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Lisa Pauline Mattackal

EMERGING MARKETS-Brazil's real eyes longest losing streak since October

Mar 26 2021

* Real slides for fifth straight session * Oil jump boosts Mexico, Colombia FX * Colombia c.bank seen holding rates By Sruthi Shankar and Lisa Pauline Mattackal March 26 Brazil's real was on its longest losing run this year on Friday, hit by worries about a coronavirus pandemic that is spiraling out of control and a stronger dollar as investors bet on a speedy U.S. economic recovery. The real weakened for a fifth straight day in what could be its first five-day losing streak since late October. Meanwhile, a near 4% jump in crude prices after a massive traffic jam caused by a giant container ship blocking the Suez Canal - a major global trade route - lifted currencies of oil exporters Colombia and Mexico. Brazil registered a record 100,158 new coronavirus cases on Thursday, a day after it surpassed 300,000 fatalities from the pandemic, the world's worst death toll after the United States. "Vaccines are rolling out gradually and the government does not have the fiscal ammunition it did last year, and if it were to pursue similar policies it would be flirting even closer with a fiscal crisis scenario," Ramiro Sugranes, senior analyst for Latin America research at FrontierView told the Reuters Global Markets Forum. "What this means essentially is that the Brazilian economy will likely underperform relative to other peers, especially in the first half this year." The lower house approved Brazil's 2021 budget, which includes more than 25 billion reais ($4.43 billion) in cuts, sending it to the Senate for approval. The Colombian peso gained for the first time this week ahead of a central bank policy decision where the board is likely to leave the benchmark interest rate unchanged at 1.75%. Colombia's policy decision comes after central banks in Mexico, South Africa and the Philippines this week held interest rates as they balanced the need for spurring economic growth while keeping a lid on inflation. Still, an index of EM currencies was on course for its biggest weekly decline since September as investors snapped up the greenback on hopes of a stimulus-driven U.S. recovery. Latin American stocks were supported by rising commodity prices on Friday, but were also headed for weekly declines. Key Latin American stock indexes and currencies: Latest Daily % change MSCI Emerging Markets 1306.22 1.38 MSCI LatAm 2262.14 0.49 Brazil Bovespa 115211.98 1.29 Mexico IPC 47157.49 0.31 Chile IPSA 4818.60 1.07 Argentina MerVal 47330.92 1.013 Colombia COLCAP 1329.48 0.71 Currencies Latest Daily % change Brazil real 5.7073 -0.68 Mexico peso 20.5664 0.53 Chile peso 730.6 -0.77 Colombia peso 3656.45 0.24 Peru sol 3.734 -0.01 Argentina peso (interbank) 91.8400 -0.07 (Reporting by Sruthi Shankar and Lisa Pauline Mattackal in Bengaluru; Editing by Kirsten Donovan)

Dollar likely to rise, but rally will lose steam later in 2021, Forum says

Mar 25 2021

Economic growth and higher bond yields will keep the U.S. dollar stronger for now, but the rally will lose steam later in 2021 because of a dovish Federal Reserve and rising fiscal deficit in the United States, economists and strategists said.

U.S. stimulus to boost Mexico; LatAm stocks to outperform in short term: UBS

Feb 03 2021

Increased U.S. infrastructure spending and fresh rounds of economic stimulus will bolster Mexico's manufacturing-oriented economy, a UBS Global Wealth Management executive said on Wednesday.

Emerging market resurgence carries relapse risk

Dec 04 2020

LONDON/Bengaluru After several lean years for emerging markets, fund managers are bullish again on the asset class, expecting it to benefit in a post-pandemic world of improving economic growth and a frantic hunt for higher-yielding investments.

Stock market pro-growth rotation may not last long: Natixis

Dec 03 2020

The "risk-on" stock market rotation of recent weeks may not last long into 2021 as it has largely priced in the roll out of COVID-19 vaccines and an economic recovery next year, according to the head of global market strategy at French asset manager Natixis.

U.S. bond volatility players eye 2021 inflation bump

Nov 30 2020

After a decade of central bank bond buying, fund managers have begun to wonder if there is again money to be made in betting or hedging against volatility in the bond market caused by an economic recovery next year.

Coronavirus vaccine hope dampens prospects for corporate stay-at-home darlings

Nov 10 2020

The surge in shares of Netflix , Zoom and other of this year's stay-at-home corporate winners has been brought to a sudden halt by promising vaccine data suggesting a possible way out of the COVID-19 pandemic.

Coronavirus vaccine hope dampens prospects for corporate stay-at-home darlings

Nov 10 2020

The surge in shares of Netflix , Zoom and other of this year's stay-at-home corporate winners has been brought to a sudden halt by promising vaccine data suggesting a possible way out of the COVID-19 pandemic.

U.S. dollar softness to continue; Euro, yen best placed - PIMCO

Sep 15 2020

The U.S. dollar is likely to continue weakening against developed market currencies after the U.S. Federal Reserve's shift to a new monetary policy strategy, a portfolio manager at bond giant PIMCO said on Tuesday. Erin Browne, managing director and portfolio manager at PIMCO, told the Reuters Global Markets Forum she had become more bearish on the U.S. dollar over the last three months.

U.S. crackdowns on Huawei prompt chip stockpiling, proposed aid not enough - VLSI Research

Sep 01 2020

U.S. President Donald Trump's restrictions on China's Huawei Technologies Co Ltd [HWT.UL] have sparked widespread stockpiling of unsold product across the chip industry, and Washington's proposed aid to bolster the sector falls far short of what is needed to fill the gap, an analyst told Reuters.

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