A roundup of Tuesday’s stock market results from across the region
👑 Argentina’s Merval leads in Latin America:
The majority of Latin America’s markets closed higher on Tuesday, following the trend in the US. Argentina’s Merval (MERVAL) led the day’s gains in Latin America, closing 3.02% higher.
The misalignments in the Argentine economy are causing an inflation rate that will close the year at around 100% annually, and an exchange rate gap of three digits. But, paradoxically, these variables are giving impetus to other variables, which, in the short term, may bring benefits.
This is what is happening with the investment rate, which is approaching record levels of 2008 and 2017 and which has a high productive composition, both machinery and construction. In August, investment managed to return to 0.8% monthly growth.
The S&P/BVL Peru (SPBLPGPT) had the second largest gain of the session, up 2.53%, driven by the performance of the financials, industrials, and materials sectors.
Shares of Compañía de Minas Buenaventura (BVN), Credicorp (BAP), y la Corporación Aceros Arequipa (CORAREI1) were among the strongest climbers.
📉 A bad day for Brazil’s Ibovespa:
Brazil’s Ibovespa (IBOV) was the only Latin American index to close lower on Tuesday, closing 1.20% lower, dragged down by the consumer staples, information technology and healthcare sectors.
Risk aversion once again dictated the course of the Ibovespa, in another bearish day for the shares of state-owned Petrobras (PETR4) and Banco do Brasil (BBAS3), which fell prior to the second round of the presidential elections.
The consumer price index rose 0.16% in October, after two months of deflation, but still under the effect of the fall in fuel prices. In the year, the index rose 4.80% and, in 12 months, 6.85%.
🗽 On Wall Street:
US stocks rose on Tuesday after a fresh batch of corporate earnings largely beat estimates even as investors weighed risks to economic growth from the Federal Reserve raising interest rates to combat inflation. About half the gain was retraced after 4 p.m. in New York when a handful of technology results disappointed investors.
The S&P 500 and the Nasdaq 100 rose for a third straight session. The Coca-Cola Co. and General Motors Co. closed the session in green after topping analysts’ earnings estimates. Google parent Alphabet Inc. fell postmarket after missing estimates. Microsoft Corp. which also reported earnings after markets closed, topped expectations but cited the impact the surging US dollar had on revenue growth.
The S&P 500 rose 1.63%, and the Nasdaq Composite (CCMPDL) 2.25%, boosted by the shares of Apple Inc. (AAPL). The Dow Jones Industrial Average rose 1.1%.
Treasuries rallied, with the 10-year yield falling to around 4.08%. The dollar dropped after data on Tuesday showed that home-price growth in the US slowed as high borrowing costs sapped demand.
Investors still expect the Fed to raise rates by three-quarters of a percentage point during its meeting next week. But recent economic data is already showing that Fed tightening has started to weigh on the US economy, leading investors to speculate that the central bank may be approaching the end of its aggressive tightening campaign. This renewed expectation of less hawkishness from the Fed, as well as a better-than-expected earnings season so far, have pushed stocks higher in recent days.
“The big thing is what we’re seeing from earnings, and as we get more and more, the market is coming around to this sense that the outlooks aren’t nearly as bad as some had feared,” Shawn Cruz, head trading strategist at TD Ameritrade, said in an interview. “The market was actually bracing itself for more pessimistic tones from companies as we got through earnings and it’s not coming out that way right now. It’s mixed too, but even being mixed is ahead of expectations.”
Roughly 28% of S&P 500 companies have reported earnings, with around 70% outperforming estimates, according to data compiled by Bloomberg.
Este martes, las bolsas de Estados Unidos volvieron a cerrar al alza por tercera sesión consecutiva apalancadas por los últimos resultados empresariales y a pesar de que los inversores siguen sopesando los riesgos para el crecimiento económico de que la Reserva Federal siga subiendo las tasas de interés para combatir la inflación.
Analysts are also expecting a jumbo hike of 75 basis points from the ECB on Thursday, even as many economists now reckon a recession has begun in the euro region. German business confidence improved in October, data showed Tuesday, though remained at depressed levels as Europe’s largest economy heads into a challenging winter.
Elsewhere in markets, the British pound gained as Rishi Sunak formally took over as UK prime minister on Tuesday, vowing to “fix” the mistakes made by his predecessor, Liz Truss.
On the currency markets, the Bloomberg Dollar Spot Index fell 0.8%, the euro rose 0.9% to $0.9967, the British pound rose 1.7% to $1.1471 and the Japanese yen rose 0.7% to 147.93 per dollar.
🔑 The day’s key events:
Bitcoin, the largest cryptocurrency by market value, surpassed $20,000 on Tuesday and ended its longest streak below that price level since the token first surpassed the threshold in late 2020. The cryptoasset rose as much as 4.15% to $20,185 on Tuesday to snap a two-week losing streak.
Other digital assets followed suit, with ether advancing as much as 11% to trade at $1,505, its highest price this month.
Meanwhile, so-called altcoins such as Solana and Dogoin also rose.
Cryptocurrencies rose on the day as investors assessed mixed corporate earnings and weighed risks to economic growth.
Despite today’s gains, bitcoin still remains in its multi-month price slump as central banks raise interest rates to curb rising inflation. The token has lost nearly 60% of its value so far this year.
🍝 For the dinner table debate:
The fortune of Kanye West, now known as Ye, was an unknown quantity for many years. He claimed to have a net worth of more than $1 billion on multiple occasions thanks to a series of lucrative deals with companies, most notably his Yeezy brand’s partnership with Adidas.
It didn’t appear to be far off the mark: Yeezy generated more than $500 in royalty and marketing payments during the first four full years of the Adidas deal and through 2020, according to UBS Group AG (UBS). It also had partnerships with Gap Inc (GPS) and Balenciaga. In addition, an unaudited balance sheet of its financials reviewed by Bloomberg in 2021 showed it had $122 million in cash and stock.
The biggest risk to any estimate of his net worth was that he would destroy himself. And that is what is happening in real time. Adidas said it will stop all payments to Ye and leave the Yeezy business immediately after Kanye’s offensive behavior, including anti-Semitic comments on social media.
Leidys Becerra, a content producers at Bloomberg Línea, and Vildana Hajric and Isabelle Lee of Bloomberg News, contributed to this report.
