U.S. Shares Climb as 2021 Inflation Meets Expectations; Peru Leads LatAm Gains

Peru posted LatAm’s strongest results amid a quietening of the political scene and higher copper prices

Markets Wrap
January 12, 2022 | 05:42 PM

Bloomberg Línea — U.S. markets closed another day with gains on Wednesday despite inflation hitting its highest level since 1982, closing 2021 at 7%, but which was within market expectations, and although the result piles more pressure on the Federal Reserve to accelerate interest rate hikes, investors took the data in their stride.

The S&P 500 (SPX) closed with a 0.28% gain, the Dow Jones Industrial (INDU) gained 011% and the Nasdaq Composite (CCMPDL) closed up 0.23%.

“Fears about higher and persistent inflation have been well telegraphed in recent months. Today’s rise in the rate of inflation falls within investors’ expectations,” Richard Flynn, managing director at Charles Schwab U.K., told Bloomberg.

Bitcoin also had a good day, rising 2.9% to $44,034,02 at 16:21 ET after the inflation data revived the debate about whether the cryptocurrency is a hedge against price rises, according to Bloomberg.


Latin America

Peru’s stock exchange (SPBLPGPT) had the best performance of the region, which closed up 3.26%, driven by a hike in the share prices of financial and mining companies.

Peru’s sol has also gained ground against the U.S. dollar thanks to a calming of the political atmosphere and less mistrust of the Peruvian government headed by President Pedro Castillo, according to analysis by Kallpa Cambios.

Copper prices increased by 1.63% to end the day’s trading at $9,719.50, benefitting the country’s copper producers.

The other two markets to post the highest gains were Chile (IPSA), with a 2.57% hike, and Colombia’s Colcap (COLCAP), which rose by 1.98% on a day on which the second public takeover bid by Grupo Gilinski closed, this time for Grupo Nutresa.

This is how the region’s markets and currencies performed on Wednesday, January 12: