A roundup of the region’s stock market results on Tuesday
🗽 On Wall Street:
U.S. stocks fell again on Tuesday, one day after Vladimir Putin’s government announced the recognition of two separatist regions in eastern Ukraine, and ordered troops to those regions to “guarantee peace”.
Western countries reacted and the United Kingdom, Germany, the European Union and the United States announced the first package of sanctions against the Russian administration.
President Joe Biden even assured that the recognition announced by Putin was the beginning of the invasion of Ukraine, and said that Russia “will pay a higher price” if it decides to go further.
German Chancellor Olaf Scholz opted to halt the certification process for the Nord Stream 2 pipeline, a project Putin has personally led.
The S&P 500 fell 1.01%, chalking up three consecutive sessions with losses and entering correction territory, having lost 10% from the high reached in January. The Dow Jones Industrials lost 1.42% and the Nasdaq Composite (CCMPDL), meanwhile, slipped 1.23%.
Read More: Russia’s Richest Lose $33 Billion in Wealth as Ukraine Crisis Escalates
🔑 Key Data:
Commodity prices have gained ground as the crisis in Ukraine escalates and Western countries begin to react with sanctions in response to Russia’s moves.
From oil to nickel the behavior has been bullish, as the possibility of a military conflict in Eastern Europe increases. Crude oil benchmarks are increasingly approaching the $100 barrier, with Brent rising 1.24% to $96.57, while WTI gained 1.41% to $92.35.
Nickel, which closed above $24,349 on the London Metal Exchange, has rallied on lower inventories and concerns that a conflict will disrupt the supply chain for the raw material for stainless steel and rechargeable batteries.
Aluminum gained 0.52% to close at $3,279, despite breaking the $3,300 barrier during the session and approaching highs not seen since 2008.
🏅 The Leader:
The Mexican stock market had the best performance in Latin America, closing with a gain of 1.11%, with shares in the real estate, industrial and communication services sectors performing well during the day.
Shares of Grupo Carso (GCARSOA1), América Móvil (AMXL) and Grupo Aeroportuario del Pacífico (GAPB) were among the best performers of the day.
Telcel, América Móvil’s mobile business in the country, announced the beginning of the deployment of its 5G Mexico network service, its most important launch in Latin America.
Brazil’s Ibovespa (IBOV), the leading index of the largest stock market by market capitalization in the region, was the second best performer, ending with a gain of 1.04%.
The health, information technology and consumer staples sectors drove the index’s performance.
📉 A Bad Day:
The Peruvian stock market recorded the worst performance in Latin America, with the S&P/BVL Peru (SPBLPGPT) closing with a drop of 1.50%, in line with the declines on international markets.
The financials, materials and consumer staples sectors were the three worst performers.
The shares of Minas de Buenaventura (BUENAVC1), Credicorp (CRECAPC1) and Unión de Cervecerías Peruanas (BACKUSI1) had one of the sharpest declines of the day.
The local stock market was affected mainly by the escalation of tensions between Ukraine and Russia and the responses from Western countries.
🍝 For the Dinner Table Debate:
Cryptocurrencies continue to gain ground in Latin America. Brazil’s Senate took a first step towards regulating the national cryptocurrency market, after a bill aimed at creating basic rules for digital currency funds and their daily use passed a key legislative stage.
According to the proposal, the federal government will decide which agency will be responsible for regulating cryptocurrency businesses. The bill’s brainchild, Senator Irajá Abreu, said he expects this responsibility to fall on the Central Bank.
The bill also states that virtual asset service providers must prevent money laundering and concealment of assets, while combating criminal organizations, terrorist financing and the proliferation of weapons of mass destruction. The text provides for prison sentences and fines for violations.