(Updated at 1422 GMT)
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Azul ( AZUL ) reaches deal with bondholders for additional
financing
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Mexico's Cemex lowers core earnings guidance for Q3
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Colombia's govt. expands debt issuance cap by over $2 bln
By Johann M Cherian
Oct 28 (Reuters) - Currencies of most Latin American
economies were steady on Monday as investors awaited a string of
country-specific data reports through the week, while Colombia's
peso hit levels not seen in more than a year, tracking weak
crude prices.
Brazil's real edged up 0.10% to 5.70 against the
dollar, tracking higher iron ore prices.
Investors will keep a close eye on September budget data due
on Thursday. Concerns around the country's fiscal stability had
sparked a sell-off in the real earlier in the year, making it
one among currencies with the steepest declines in the region.
MSCI's gauge for Latin American currencies
was unchanged against a weakening dollar. However, the
greenback was on track for its sharpest monthly rise since April
2022 as markets dialed back expectations for another 50
basis-point reduction by the Federal Reserve in November.
Markets also braced for the possibility of a second Donald
Trump presidency, with real-money prediction market platform
PredictIt suggesting the Republican candidate has an edge over
Democrat Kamala Harris.
Trump's policies around trade, security and immigration are
expected to undermine assets in Latin America, according to
analysts.
Oil exporter Colombia's peso weakened 0.4% to 4,343
to the dollar, tracking a near 6% slump in crude oil prices as
geopolitical tensions in the Middle East appeared to have
subsided briefly.
Investors also priced in a 75 bps interest rate cut by the
local central bank, due on Thursday.
Goldman Sachs analysts expect a 50 bps rate cut. "We think
that the recent inflation and activity prints, a weaker currency
tracking at its lowest level in a year, and recent
market-unsettling domestic developments are consistent with a
moderate 50 bps cut," they said.
Yields on sovereign bonds maturing in 2032 ticked up 8 bps.
The domestic government raised its cap for issuing domestic
public debt securities to cover planned spending for this year.
Fellow crude producer Mexico's peso slipped 0.36%
ahead of third-quarter gross domestic product data due later in
the week.
Copper producer Chile's peso rebounded 0.46% after
two straight days of losses, while Peru's sol was flat.
MSCI's gauge for regional equities edged up
0.5%, with Brazil's Bovespa up 0.9%.
Azul ( AZUL ) shot up 11% after the carrier reached a deal
with an existing group of bondholders to obtain additional
financing as part of restructuring that it expects to ease
market concerns about its debt load.
Mexico's main stock index was flat, with Cemex
losing 9.9% after the cement producer reported a
9% year-on-year drop in third-quarter core earnings.
Elsewhere, Uruguay's new peso was little changed.
The country is heading for a tight presidential election run-off
next month.
Ecuador's national assembly approved a bill that seeks to
expand direct private investment in the electricity sector
against the backdrop of a severe energy crisis.
Latin American market prices from Reuters
Equities Latest Daily %
change
MSCI Emerging Markets 1138.13 0.29
MSCI LatAm 2178.57 0.52
Brazil Bovespa 131050.09 0.89
Mexico IPC 51753.41 -0.06
Chile IPSA 6763.14 0.13
Argentina Merval 1893809.56 1.12
Colombia COLCAP 1337.43 0.22
Currencies Latest Daily %
change
Brazil real 5.7023 0.09
Mexico peso 20.0225 -0.36
Chile peso 944.2 0.46
Colombia peso 4343 -0.39
Peru sol 3.7649 0.08
Argentina peso (interbank) 987.5 -0.20
Argentina peso (parallel) 1200.0 2.04