Latin American assets rise as investors shift focus to central bank decisions

The MSCI Latin America Stock Index rose by 0.39%, and the Latin American Currency Index increased by 0.60%. The Mexican stock market climbed 0.9%, while the Mexican peso appreciated slightly by 0.4% against the US dollar. The Colombian peso depreciated by 0.34%, and the local stock market fell by 0.9%, mainly dragged down by a 4.7% plunge in Ecopetrol’s share price. The Peruvian stock market rose nearly 1%, and the Peruvian sol edged down by 0.2%. Goldman Sachs analysts wrote in a report: “We expect the [Monetary Policy Committee] to maintain a cautious stance on the inflation outlook, while reiterating its view that supply shocks affecting the economy are temporary and are currently normalizing.” The Brazilian stock market fell by 1%. In recent months, investors have been closely monitoring the country’s domestic political dynamics.