iShares Latin America 40

Economic activity in Brazil (EWZ) has been slow as it tries to emerge from its deep recession in 2016. But consumer and business confidence is improving.

Colombia (GXG) signed a deal with the Mercosur trade bloc on July 21, 2017, to allow the import of limited quantities of certain products without a tariff in the Colombian market.

Investor sentiment with respect to Latin American economies has definitely been changing since the beginning of the year.

The IMF cut its global economic growth forecasts, according to the latest IMF World Economic Output Update dated July 19. The cut in forecasts was expected.

Argentina (ARGT) posted a higher trade deficit for May 2017 at $642 million, mainly due to increasing imports as compared to its exports.

As the third-largest economy in Latin America, Colombia is expected to recover from its subdued growth of ~2% in 2016—its lowest figure since 2009.

Previously in this series, we’ve looked at China’s July steel and aluminum exports. In this final part of the series, we’ll look at Chinese copper imports.

Since the ’80s and ’90s, Latin American banks have stabilized. Today, the largest banks in Latin America are concentrated in two countries: Brazil and Mexico.

The final Markit Brazil Manufacturing PMI (Purchasing Managers’ Index) stood at 50.9 in September 2017. It remained unchanged compared to August 2017.

According to a report by Markit Economics, the final Brazil manufacturing PMI (purchasing managers’ index) rose to 50.9 in August 2017 as compared to 50 in July.

China imported 390,000 metric tons of unwrought copper and copper products in August 2017—compared to 350,000 metric tons in August 2016.

Consumer prices in Colombia (GXG) rose 3.4% on a year-over-year basis in July 2017, lower than the 4.0% rise in June 2017.

During its 2Q17 earnings call, Freeport-McMoRan (FCX) lowered its 2017 copper production guidance to 3.7 billion pounds.

Mexico’s manufacturing activity posted a strong performance after its output, new orders, and employment picked up the pace in June 2017.

Consumer prices in Mexico (EEM) surged 6.31% year-over-year (or YoY) in June 2017, compared to their 6.16% rise YoY in May.

Global (ACWI) recovery in 2017 has helped labor market conditions to improve across OECD (Organisation for Economic Co-operation and Development) nations.

Economic activity in Mexico rose 3.1% year-over-year (or YoY) in May 2017, a rebound from its YoY fall of 0.57% in April 2017.

Political chaos has affected confidence levels in Brazil, which saw its business confidence reach its lowest level in 2017 in June.

Consumer prices in Brazil (BRZU) grew by 3% YoY in June 2017, compared with 3.6% in May 2017.

President Mauricio Macri’s austerity measures seem to be impacting Argentina’s consumer confidence, as it saw another fall in June 2017.

Chile’s economy is highly dependent on copper mining activities. The recent long strike at BHP Billiton’s Escondida copper mine continues to impact Chile.

Peru’s economy continues to suffer in 2017 from the damage caused by floods in March 2017 due to the ENSO (El Niño Southern Oscillation).

Latin American (ILF) equities in June 2017 remained steady amid the political turmoil among its member nations.

On July 13, 2017, Brazil’s former President Luiz Inácio Lula da Silva was sentenced to ten years in prison for graft.

Colombia, an important Latin American (ILF) economy, is currently facing sluggish growth due to a decline in commodity prices (DBC) and political instability.

1Q17 economic growth in Colombia (ICOL) remained below market expectations.

Annual consumer inflation in Colombia (GXG) has dropped for 12 consecutive months as of June 2017.

Brazilian (ILF) manufacturers remain firmly optimistic about the country’s output growth in the next 12 months.

UAL is currently trading at $76. Its 52-week high is $83.04, and its 52-week low is $37.64.

Argentina’s (FM) consumer confidence saw a huge drop in June 2017, as Argentinians are highly unsatisfied with the austerity measures President Macri’s government has adopted.

The Brazilian real dropped ~2% in May 2017 amid the country’s ongoing political instability.

According to Peru’s Ministry of Economy and Finance, the El Niño–related infrastructure damages were close to $4 billion.

Colombia’s (ICOL) GDP grew 1.1% year-over-year in 1Q17, lower than its 1.6% expansion in 1Q16.

Peru is one of the fastest-growing economies among emerging markets.

Brazil (EWZ) is expected to see a reversal of the downward trend in its economic growth in 2017, mostly with the help of rising commodity prices and improvements in exports.

Brazil’s performance in the 2016 Rio Olympics and worldwide speculation about a Fed rate hike might have a role to play in the country’s stock market performance in fiscal 2016.

The sharp rise in global liquidity conditions has been channeled mainly into emerging market (EEM) economies.

The Latin American (ILF) (EWW) economy contracted in the second half of 2015. The fourth quarter registered the biggest fall in six years.

World Bank data reveal that since 2011, more than 60 million people in Latin America have opened bank and mobile money accounts.

Changing demographics in Latin America are driving innovations. Young people, which account for 25% of the total population, are more likely to accept innovation.

The central bank of Colombia increased interest rates on June 22, 2016, by 25 basis points to 7.5%, which was in line with expectations. This was its tenth consecutive hike in benchmark rates.

Brazil’s inflation rate slowed for the second straight month in March. The annual inflation rose by 9.4%—compared to 10.4% in the previous month.

The Chilean peso depreciated against the US dollar on January 29, 2016, as reports indicated that copper production fell 5.5% in December 2015.

The Brazilian real has been trading on a weaker note against the US dollar in the last year after depreciating by more than 40% against the US dollar.

According to the World Bureau of Metal Statistics, Peru’s refined copper production declined in the first three months of the current year.