LatAm Markets Split as Commodities Rally, Regional Currencies Diverge
Argentine and Colombian equities surged while Brazil and Mexico retreated, as soaring metal and oil prices strengthened major exporter currencies against a mixed regional backdrop.
Latin American equity markets diverged on Tuesday, with Argentine and Colombian stocks posting strong gains while major indices in Brazil and Mexico drifted lower. The regional split was mirrored in currency trading, where core exporters strengthened against the US dollar.
Argentina’s Merval index climbed 1.79% to close at 3,281,489 points. Energy companies drove the rally, with state-owned oil producer YPF rising 1.89% and Pampa Energia surging 3.42%. Utilities and telecoms also participated in the uplift, with Telecom Argentina adding 1.69% and TGS gaining 1.68%.
Colombia’s COLCAP advanced 0.49%. The index was bolstered by a 2.87% jump in Ecopetrol and a 4.52% surge in Southern Copper, which closed at 182.98. Banks traded higher, with BancoColombia and Grupo Aval both rising roughly 1.6%.
Meanwhile, Brazil’s Bovespa slipped 0.35% to 172,758.89. Retailers suffered notable losses, dragging on the benchmark. RDOR3 plunged 4.20%, while Raia Drogasil fell 0.75%. Mexico’s IPC dropped 0.74% to 66,125.27, pressured by a 0.45% decline in Walmart de Mexico.
Global commodities offered a supportive backdrop for resource-heavy Latin American economies. Copper, a vital regional export, jumped 3.44% to 6.52. Lithium, a critical material for battery manufacturing, gained 3.18% to 69.05. Oil prices also marched higher, with Brent crude rising 3.02% to 91.91 and West Texas Intermediate adding 2.08% to 84.96.
Agricultural commodities showed mixed results. Corn prices surged 5.23% to 473.00, but key regional exports struggled. Coffee futures dropped 2.54% to 325.90, and soybeans declined 0.35% to 1,222. Beef and cattle prices also retreated, falling 1.73% and 2.07% respectively.
Foreign exchange markets highlighted a stark divide within the region. The Brazilian real firmed 0.25% to 5.08 per dollar, and the Mexican peso appreciated 0.16% to 17.40. The Colombian peso strengthened 1.06%.
Conversely, several Central and South American currencies depreciated sharply against the greenback. The Guatemalan quetzal fell 2.33%, the Bolivian boliviano weakened 2.69%, and the Honduran lempira dropped 1.61%.
Global equity markets mostly rose, with Japan’s Nikkei surging 3.26% and the US S&P 500 adding 0.68%. Safe-haven assets attracted bids, with gold increasing 1.52% to 4,071.
