A roundup of the region’s stock market results on Thursday
👑 Brazil’s Ibovespa leads in Latin America:
Latin America’s stock markets saw mostly good results on Thursday, catching the optimism of Wednesday in the United States after the Fed’s minutes.
Brazil’s Ibovespa (IBOV) advanced 2.75%, recovering from two days of falls and with the impulse of a political scenario with less uncertainty, after the Superior Electoral Court denied the request of President Jair Bolsonaro’s party to annul part of the vote of October 30, which would have given a twist to the presidential results.
Along with this, the comments on who could lead the Finance Ministry in Lula da Silva’s incoming government, also imbued the Brazilian stock market with good humor. The names that are in the rumor mill are those of the former president of the Central Bank, Pérsio Arida, and the former Minister of Education, Fernando Haddad, who already appeared in Lula’s first term of office.
Regarding the Argentine market, Leonel Buccolo, account executive of Rava Bursátil, said in a commentary that “dollarized bonds aim to end the month with generalized increases of around 15%, and both peso and dollar quotations put pressure on the MEP quotation, which is currently at $315.
📉 A bad day for Mexico’s BMV:
Mexico’s S&P/BMV IPC (MEXBOL) was the only stock exchange in the region that registered losses on Thursday, although these were minimal, to the order of 0.03%.
The shares with negative results during the day were from the materials and industrial sectors, and included the shares of Operadora de Sites Mexicanos (SITES1), Grupo México SAB (GMEXICOB) and Grupo Carso SAB (GCARSOA1).
A report published this Thursday by the country’s statistics bureau INEGI shows that Mexico’s consumer price index increased 0.56% in the first fortnight of November with respect to the previous fortnight. With this result, headline inflation stood at 8.14% annualized in the first half of November, lower than the 8.25% expected by the consensus, and lower than that of the immediately preceding fortnight, making the accumulation of four consecutive fortnights with a downward trend in headline inflation.
🌍 Global markets:
Federal Reserve minutes released Wednesday continue to impact global markets as the U.S. Thanksgiving holiday passes. European stocks rose Thursday and the US dollar lost strength as most Fed officials bet on slowing the pace of interest rate hikes.
“Is it a pivot? No, but are we seeing a slowdown in rate hikes and a downward path to rate cuts? Yes. I think we will look back and say this was the peak,” said Sunaina Sinha Haldea, global head of private equity advisory at Raymond James.
During the day, the Stoxx Europe 600 index rose 0.46% to 440.84, adding to its rally of the past few days, explained especially by an outperformance of the real estate sector. In addition, European bonds rose in response to some European Central Bank officials agreeing to a smaller increase in interest rates, according to the report of the last meeting published on Thursday.
The US dollar completed three days of declines on Thursday, retreating 0.21% (16:35 NY), according to the Bloomberg Dollar Spot Index, which tracks the performance of a basket of 10 leading global currencies against the U.S. dollar.
🔑 The day’s key events:
Oil prices were little changed on Thursday, finding a stable point after the European Union considered a higher cap on crude to be negotiated by Russia, in a window of $65 to $70, although still without a final figure.
Goldman Sachs Group Inc. said a higher price cap than is being considered may reduce the risk of retaliation from Moscow, although it expressed doubts that the mechanism could be implemented, Bloomberg reported.
Likewise, the US holiday reflected low trading volumes in the day, which is why WTI oil advanced only 0.03% to $77.96 per barrel, while Brent oil had a minimal drop of 0.08%, to $85.34 per barrel.
However, the advance of Covid-19 in China and lower demand if tight restrictions return as part of the Covid Zero policy still put pressure on the oil market, as the country approaches 30,000 new cases per day, the highest figure of the pandemic in the country.
🍝 For the dinner table debate:
Binance CEO Changpenz “CZ” Zhao gave more details on his plan to mitigate the impact of the FTX collapse on the industry, pledging to raise at least $1 billion to buy distressed assets. In addition, he said his company will make another bid for bankrupt lender Voyager Digital.
In an interview with Bloomberg Television, Zhao gave more information about the deals Binance is exploring. He said the focus lies in bringing together partners for the fund, which seeks to back promising but cash-strapped projects.
“We are going to take a flexible approach where different players in the industry will contribute as they wish,” he said. Zhao added that he will soon publish a blog post with more details about the fund.
Zhao also said he is looking to limit the damage of the FTX collapse on the crypto sector, a fact he helped accelerate with a tweet about Binance’s plans to sell $530 million in holdings of the FTX native token.