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MSCI LatAm FX up 0.3%, stocks gain 0.67%

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Ukraine international bonds jump on peace deal hopes

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Mexican bi-monthly November inflation above estimates

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Reuters reports US plans new phase of Venezuela operations

(Updates with afternoon trading)

By Purvi Agarwal and Nikhil Sharma

Nov 24 (Reuters) -

Latin American stocks rose on Monday as global risk

sentiment improved on growing expectations of a U.S. interest

rate cut next month, with progress on a Ukraine peace deal also

on the radar, while currencies largely traded cautiously.

The MSCI index tracking Latin American equities

rose 0.67%, while currencies

gained 0.3%. On Friday, both had marked their steepest weekly

declines since July and October, respectively, amid a global

sell-off in risk assets.

Comments by New York Federal Reserve President John Williams

on Friday boosted bets of a December Federal Reserve rate cut,

with optimism around lower rates lifting global market sentiment

on Monday, spilling into Latin America.

Meanwhile, the U.S. and Ukraine sought to narrow gaps in a

peace plan to end the war with Russia after agreeing to modify a

U.S. proposal that Kyiv and its European allies saw as a Kremlin

wish list.

Expectations that a Russia-Ukraine deal was close lifted

appetite for Ukrainian assets, sending its international bonds

soaring on Monday. The 2035 maturity was up

2.1 cents on the dollar. Ukraine-focused stocks also gained,

with London-based miner Ferrexpo ( FEEXF ) climbing 22.3%.

In Latin America, Brazil's real was 0.2% higher,

while stocks gained 0.3%. The country's central bank

governor expressed dissatisfaction with the progress toward

bringing inflation back to its target, despite keeping the

benchmark rate at a near two-decade high to curb price

pressures.

Separately, the bank sold $2 billion in an auction with a

repurchase agreement.

A panel of Brazil's Supreme Court voted on Monday to keep

Jair Bolsonaro in police custody, after the ex-president was

detained on Saturday.

"There is no change in Bolsonaro's ineligibility situation,

but this event is an escalation of uncertainties related to who

will run through the right wing in the 2026 election," said

Citigroup analysts.

Colombia's peso was flat. Stocks slipped

0.5%, the only outlier among peers. Colombia repurchased over $4

billion in bonds and placed 2 billion euros in global notes, the

finance ministry said on Friday.

Currencies in Mexico and Chile fell 0.35% and

0.16% respectively, although stocks moved higher.

Mexico's annual inflation rate hit 3.61% in the first half

of November, data showed, slightly above expectations of

economists polled by Reuters.

"The Mexican inflation outturn of 3.6% y/y in the first half

of November, coming alongside the contraction in GDP in Q3,

means Banxico will probably opt for another 25bp cut at its next

meeting (despite policymakers' growing cautiousness about the

easing cycle)," Capital Economics analysts said in a note.

Among economic indicators from the region, focus will center

on key employment reports from Mexico, Chile, Colombia, and

Brazil, which are due later in the week.

Meanwhile, a Reuters report said that the U.S. is poised to

launch a new phase of Venezuela-related operations. Venezuela

rejected the plan as "ridiculous".

Markets in Venezuela and Argentina were closed for public

holidays.

Argentina's economy minister said on Friday that officials

did not speak with U.S. banks about a $20 billion rescue

package.

In October, the U.S. Treasury had reached a $20 billion

exchange-rate stabilization agreement with Argentina, to be

paired with a bank-led debt facility for the same amount.

Elsewhere, the International Monetary Fund said Poland must

prioritize curbing the rapid increase in its public debt.

And Israel's central bank delivered an expected 25

basis-point rate cut, its first since January 2024. The shekel

pared some declines to trade 0.1% lower against the

dollar.

Key Latin American stock indexes and currencies:

Stock indexes

Latest Daily % change

MSCI Emerging Markets 1342.79 0.66

MSCI LatAm 2622.39 0.67

Brazil Bovespa 155228.26 0.3

Mexico IPC 62547.37 1.08

Chile IPSA 9802.98 -0.24

Argentina MerVal -- --

Colombia COLCAP 2030.2 -0.51

Currencies Latest Daily % change

Brazil real 5.3933 0.18

Mexico peso 18.5154 -0.35

Chile peso 939.12 -0.16

Colombia peso 3802.5 -0.07

Peru sol 3.3833 0.05

Argentina peso (interbank) -- --

Argentina peso (parallel) -- --