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👑 Chile’s IPSA leads Latin America’s gains:
Amid the pause in the US stock markets’ trading on Monday, Latin American markets rose in line with the increase in the prices of the main raw materials and on a day in which Chilean stocks showed the largest increases in the region.
The IPSA (IPSA) advanced more than 2% after the proposed Constitution that went to the polls on Sunday was widely rejected by Chileans. The index chalked up two consecutive upward sessions after Friday’s highest advance since November 2021.
This morning, Chilean President Gabriel Boric met at La Moneda Palace with the presidents of the Senate and the Chamber of Deputies to advance in a new constitution-writing process.
Thus, if a broad and concrete political agreement is reached, the financial services platform Altafid expects the risk premium to decompress and remain at lower levels than those observed during the current year.
Gains were also the order of the day on Brazil’s Ibovespa (IBOV), in a session of lower liquidity due to the Labor Day holiday in the United States. In addition, investors were attentive to the Central Bank’s Focus report, which showed that there are expectations that the interest rate will continue to rise.
Mexico’s stock market had a volatile day and struggled to find direction until the last hours of trading when it managed to reverse the losses it had incurred during the day. The S&P/BMV IPC (MEXBOL) advanced on the strength of the financial and industrial sectors.
🗽 On Wall Street:
U.S. stock markets remained closed for the Labor Day holiday, so investors’ attention was focused on the performance of European stocks.
The Stoxx Europe 600 index fell, as did the euro, after Russia’s Gazprom said last week that the Nord Stream gas pipeline will remain closed indefinitely. It made the announcement after saying it had encountered a technical problem that prevented it from resuming operations last Saturday as planned.
The shutdown puts further pressure on the energy crisis in Europe, which has been grappling with higher gas prices since the Russian invasion of Ukraine began. Europe’s economies now face a possible recession as they try to stock up enough for the coming winter.
Amid this backdrop, the euro fell to a 20-year low on Monday, while Wall Street stock futures advanced after accumulating three weekly declines in a row last Friday
🔑 The day’s key events:
Oil prices started the week higher after OPEC and its allies agreed to a surprise production cut next month, their first in more than a year.
The group of countries said it plans to cut October production by 100,000 barrels per day, a move that reverses exactly the same amount that had been raised for this month, following public requests by US President Joe Biden to help control high prices.
“This decision is an expression of will that we will use all the tools in our kit,” Saudi Energy Minister Prince Abdulaziz bin Salman said in an interview Monday seen by Bloomberg. “The simple adjustment shows that we will be vigilant, preemptive and proactive in terms of supporting the stability and efficient functioning of the market.”
The next meeting is scheduled for Oct. 5, but in the final communique the group said it is ready to convene another meeting at any time.
The oil market is facing concerns that demand may start to suffer as economies slow.
🍝 For the dinner table debate:
Security breaches at TikTok are starting to worry experts as the app gains popularity and amasses the data of one billion people around the world.
Several cybersecurity analysts tweeted Monday about the discovery of what was allegedly a breach of an insecure server that allowed access to TikTok storage, which they believe contained users’ personal data, Bloomberg reported.
This follows an alert sent out by Microsoft (MSFT) days earlier warning that it had found a “high-severity vulnerability” in the Android app “that would have allowed attackers to compromise users’ accounts with a single click.”
TikTok downplayed the claims and denied any breach discovered over the weekend. “Our security team investigated this claim and determined that the code in question has no relation to TikTok’s backend source code,” said a spokesperson quoted by Bloomberg.