Bloomberg Línea — U.S. markets closed the first day’s trading of the year with gains as analysts expect a rate increase by the Federal Reserve, which would be the first since 2018, with three expected this year, while investors continue to consider the effect of Covid-19 on the economy after being pummeled for almost two years by the pandemic.
The S&P 500 closed Monday with a 0.64% gain to hit an all-time high, while Apple hit a market capitalization of $3 trillion, becoming the first company to do so.
The Nasdaq Composite gained 1.20% while the Dow Jones Industrial gained 0.68%, also hitting a record level. “The outlook is positive for shares, but the end of the stimulus for the global economy is an important aspect to keep in mind as we begin 2022, Tom Essaye, a former trader at Merrill Lynch, wrote in a note, according to Bloomberg.
In Latin America, Brazil’s Ibovespa posted the region’s sharpest losses, falling 0.86%, as shares came under downward pressure amid news from the U.S. that the Biden administration plans to act against meatpacking conglomerates. JBS and Marfrig shares began the year with a sharp drop on the B3.
Mexico’s Stock Exchange was second in terms of losses, down 0.62% on the first day’s trading of the year, with the worst performance by shares of Elektra (down 5.82%), Megacable Holdings (down 4.11%) and Corp. Inmobiliaria Vesta (down 4,10%).
Argentina’s Merval posted the strongest gain of the region with 2.49%.
A look at the region’s markets and headlines this Monday, January 3:
Argentina:
- The price of basic products rose again in December and during the year the price of some articles increased by more than 100%. The consulting firm Focus Market calculates that, in December, food prices increased by 3.5%.
- Companies in the Argentine oilseeds and grains sector earned $2.67 billion in December, which represents a record figure for this century in the last month of the year. The figure adds to a year that was already at record highs, with the sector generating a total of $32.80 billion during 2021.
- The Argentine government made official a new export scheme that stipulates the suspension of shipments abroad of seven meat cuts, in an attempt to control the strong price pressure in the domestic market.
- Aerolíneas Argentinas announced the cancellation of flights via the Twitter account of the company’s president, Pablo Ceriani. More than 4,000 flights have already been cancelled worldwide so far this year due to the impact of the Omicron variant of Covid-19.
Brazil:
- President Jair Bolsonaro was flown to a hospital in São Paulo early Monday morning, interrupting his beach vacation after suffering abdominal pain. Bolsonaro was admitted to hospital to undergo clinical tests after feeling “abdominal discomfort”.
- Latin America’s most valuable financial company, Nu Holdings made gains after analysts initiated coverage with mostly positive views, saying stronger growth prospects justify its valuation premium over its peers.
- JBS and Marfrig shares started the first trading session of the year with a sharp fall on B3, pressured by news that U.S. President Joe Biden will announce his government’s plans to combat the market power of the conglomerates that dominate the meat and poultry processing sectors.
Chile:
- The Imacec index, a benchmark of the country’s GDP, rose 14.3% in November from a year earlier, above the median estimate of 12.9% of analysts surveyed by Bloomberg. Against the previous month, activity expanded 0.3%, the central bank reported Monday.
- Chilean food tech startup The Live Green Co. raised $7 million in a pre-Series A funding round led by Boston-based DRADs Capital, according to an emailed statement, Bloomberg reported.
Colombia:
- A total of 997 Colombian products will enter the U.S. market with zero tariffs, of which 24 are agricultural and 973 are non-agricultural, the Colombian-American Chamber of Commerce (AmCham Colombia) announced on Monday.
- Colombian production growth stagnated at the end of the year, according to Davivienda, with the slowdown occurring amid a shortage of raw materials. Price pressures in 2022 are a concern.
- Justo & Bueno’s suppliers began shipping products again to supply the Colombian chain’s stores after it was forced to close operations in Cali, the company reported on Monday.
Ecuador:
- Ecuador faces several challenges in 2022, most of them related to its economy. Improving its growth forecast, increasing employment levels, boosting its oil production, expanding its export markets and attracting more foreign investment are just some of them.
- Ecuador’s economy grew 5.6% in the third quarter of 2021 compared to the same period of the previous year, according to the general manager of the Central Bank, Guillermo Avellán.
Mexico:
- In 2022 the key word at the country’s tax authority (SAT) will be ‘control’. This year the Treasury will expand measures to control taxpayers, stepping up its bid to widen its net and harness individuals and companies that have probably never paid tax, according to three tax experts interviewed by Bloomberg Línea.
Panama:
- The wage adjustment decreed by the Panamanian government for the next two years is seen by some labor sectors as insufficient, and even discriminatory against the rights of many workers.
Perú:
- Following the lifting of blockades in Peru’s mining corridor in the area of Las Bambas mine, which produces 2% of the global copper supply, the company announced on Monday that the preliminary agreements reached with the communities will allow the mining company to reach full production capacity on January 3.
