iShares Latin America 40

The Brazilian real exhibited a gain against the US dollar on October 6, 2015, on an advancement in crude and commodity prices globally.

Since the rate hike by the Fed in December 2015, Banco de Mexico has raised rates three times totaling 125 basis points.

Among the Latin-America–focused ETFs, the iShares MSCI Brazil Capped ETF (EWZ) fell 2.5% on May 23, which was in sync with the fall in the real.

The impact of moderating copper demand is visible in China’s copper imports. China’s refined copper imports have now fallen month-over-month for five consecutive months.

Southern Copper’s financial performance has weakened over the last couple of years. Its falling revenues are largely attributable to copper price volatility.

Refined copper production in China rose 9% YoY until March. China was the biggest contributor to the surge in refined copper production.

Donald Trump’s win in the 2016 US presidential election isn’t good news for Mexico’s economy. Trump’s protectionist intentions could hamper the Mexican economy.

The Brazilian real appreciated against the US dollar on October 21, 2015, after following a negative trajectory for two subsequent sessions.

While copper bears have been overshadowed by the bulls this month, they might like their chances in 4Q17.

May unemployment figures were marginally stable compared to April Unemployment is a key indicator of economic health. It’s a lagging indicator, and that means it’s better at confirming trends, especially downward trends, since unemployment rises faster than it falls. Unemployment holds steady, in line with PMI employment indicator The June PMI showed a continued slowdown […]

Brazil (EWZ) (BRZU) is a favorite emerging market (EEM) (VWO) (EDC) for Mark Mobius. According to Mobius, there are tremendous opportunities in Brazil.

The US dollar and Argentinian peso currency pair, which is inversely related to the Argentinian peso, rose by 35.6% on December 17, 2015.

Consumer expectations surveys are helpful for analysts Consumer expectations drive the trade-off consumers make between spending and saving. Both saving and spending are important for economic growth. More spending means there’s more demand for products, so businesses increase revenues and profits. More saving, though, means banks have more capital to lend out to businesses to […]

In the current situation, when the question arises about investment in emerging markets (EEM) (EDC), investors tend to think about the Chinese economy.

The Dow Jones Latin America Financials Index (DWLAFN) has plunged 20.03% year-to-date. This poor performance is largely due to Brazilian Financials.

In an interview with Bloomberg Markets Middle East, Mark Mobius stated that he is continuing to put money into Brazil.

Chile had been known as the best-managed economy in Latin America—until recently.

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.

Despite signs of recovery within the services sector, the agricultural and industrial sectors are dragging down economic growth. The global economic indicator, as published by the Mexican Institute for Statistics and Geography, registered the third mild growth of the year in March. Despite its lagging nature, the indicator offers insight into how each of the […]

Low global interest rates have been catastrophic for Brazil. Growth is stagnant while inflation continues to soar.

The employment figures for March’s manufacturing indicators showed increases in employment, but real wages dropped significantly. The manufacturing sector in Mexico plays an important role in the economy, and while it accounts for approximately a fifth of GDP, its sensitivity to consumer demand makes it a good gauge of the overall health of the country. […]

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.

The Mexican economy expanded 0.6% in 1Q17, beating market expectations. Exports and private spending have continued to support growth in Mexico this year.

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

In October, China imported 290,000 metric tons of unwrought copper and copper products—a yearly fall of more than 31%. Imports have fallen for seven months.

Latin America, especially Brazil, weighed heavily on IBM’s fiscal 1Q16 results. The Americas and EMEA (Europe, the Middle East, and Africa) failed to report any growth in fiscal 1Q16.

The May PMI survey for Mexico showed growth at the same rate as in May, possibly implying the bottom has been reached or instead that further pains are ahead. The Purchasing Managers Index is a survey that measures the sentiment regarding several elements across the logistics supply chain. It measures growth on items such as […]

In an email interview with Bloomberg, Mohamed El-Erian said, “Brazil has an enormous potential, absolutely enormous. What is missing is the political context that enables sustained policy implementation.

China isn’t self-sufficient when it comes to raw materials. When it comes to copper imports, it’s the largest importer of copper ores, anodes, and refined copper.

Argentina’s economy expanded in 1Q17 after consecutive contractions over the last three quarters.

China isn’t self-sufficient when it comes to its copper needs. While copper mining is concentrated in Latin America, more than half of the world’s copper is consumed in Asia.

Critical Latin American indexes were trading on a positive note on February 29, 2016.

After CEO John Flint’s exit, HSBC might cut thousands of jobs—mainly seniors executives. Noel Quinn will serve as an interim CEO.

Several negative factors have come combined to cause a steep drop in the equities market Over the past month, the main Brazilian ETF, EWZ, has dropped 20% in value. Below is a recap of the negative chain of events that led to this fall and how likely the market will recover. Social unrest: Why Brazil’s equity market […]

Duke Energy (DUK) is the second-largest utility by market capitalization. It will report its 3Q16 financial results on November 4, 2016.

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.

The social and economic crisis in Venezuela has resulted in food and medicine shortages, a crippled economy, record high inflation, and falling oil prices.

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

The survey is at its lowest point since it started slightly over two years ago The Purchasing Managers Index (PMI) measures several items along the manufacturing supply chain, including new orders, production, inventory levels, prices, and employment. The PMI serves as a leading indicator of the economy’s near-term performance, so economists and financial analysts closely […]

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.

Unemployment may be a lagging indicator, but Brazil’s steady unemployment downtrend is greatly reassuring that the economy has a solid base. Unemployment is a basic indicator of the economic performance of an economy. A low is a basic requirement for a country to achieve its economic growth potential. In the case of Brazil, unemployment has […]

Last month, China imported 443,000 metric tons of unwrought copper and copper product. China imported 450,000 metric tons in December 2017.

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.

SAP stated that the lack of political and economic stability in Latin America (ILF) contributed to its “slower than anticipated” performance in fiscal 1Q16.

Latin America’s underdeveloped infrastructure places it at a disadvantage compared to other emerging markets. Brazil is ranked 104th in a World Economic Forum report.

In the first eight months of 2015, China’s refined copper imports are down 6.7% compared to the corresponding period last year.

The Colombian peso rose by 1.96% against the US dollar on September 16, 2015, as retail sales and industrial production levels exceeded forecasts for July.

The Brazilian BM&F Bovespa SA and the Mexican IPC index fell 0.07% and 0.26%, respectively.

Of the 23 analysts tracking Duke Energy, five analysts have given it a “buy” recommendation, and 18 analysts have given it a “hold” recommendation.

The April reading of the IGP-M Index in Brazil showed that consumer prices were relatively stable through mid-April. Recall that in mid-April the central bank in Brazil decided to raise interest rates 25bps to 7.5% to avoid inflation to go higher. Many analysts felt the hike was not aggressive enough and it would fail to […]

Looking at copper import data, Chinese copper demand is not as weak as many are expecting.

Critical Latin American indexes were trading on a positive note March 1. The Brazilian index, the BM&F BOVESPA, rose 2.0%.

Latin America is at a crossroads. While some economies are faring reasonably well, others are struggling to recover from slower growth since 2013.

China is the largest importer of copper ore, anodes, and refined copper. Chile, on the other hand, is the biggest exporter of these products.

After a strong decline in February, Mexico’s unemployment climbed back up just above 5%. Unemployment is a lagging indicator.

The latest survey by the Peruvian Central Bank showed that GDP growth expectations were up in January, which is a positive development after many investors thought Peru was losing steam.

While it may not come as a surprise, the worsening unemployment means the economy is not improving Unemployment is a key indicator of economic health. It is a lagging indicator, and that means it is better at confirming trends, especially downward trends, since unemployment rises faster than it falls. After the tease drop in February, […]

Growth in manufacturing slows to six-month low and may continue to do so Of most large emerging markets, Brazil seems to be the most promising one when compared against the BRICS and Mexico given lower valuations and less severely depressed macroeconomics. The PMI is a good predictor of short to medium-term performance and offers a lot of insight […]

Hedge funds assets invested in emerging markets rose by $4.7 billion in the second quarter to end 2Q16 at a total of $189.8 billion.

Chile (ECH) continues to be the lowest-risk country in Latin America (ILF). It’s one of the best-evaluated economies in its region.

Donald Trump’s win in the 2016 US presidential election wasn’t good news for Mexico (EWW). The Mexican peso fell more than 10% on November 9, 2016.

Antofagasta (ANTO) has received “strong buy” ratings from seven analysts, while five have given it “buy” ratings or some equivalent.

Southern Copper carries a mean consensus target price of $46.8, which represents a potential downside of 8.5% over its closing price on June 11.

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

The Brazilian economy (EWZ) (BRZU) has faced a series of problems such as lower economic growth, higher inflation, political uncertainty, and higher unemployment.

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.

The Markit Brazil Manufacturing PMI rose to 52 in May 2017 compared to 50.1 in April 2017.

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.

The leading economic index in Argentina rose 3.0% in May 2017 compared to 0.70% in April 2017.

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

Chile’s economy grew 0.1% on a year-over-year basis in 1Q17, lower than the 0.5% expansion in 1Q16.

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

Copper is famous for its unpredictable supply, and analysts covering copper build a “disruption allowance” into their estimates.

Buying activity in Brazil has experienced its strongest growth in the last three years, and the rate of job cuts remained at its lowest point over the last couple of years.

Trump’s anti-trade rhetoric has caused Mexican officials to consider working toward reducing the country’s reliance on the US.

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

With the new government under the leadership of President Mauricio Macri, Argentina seems to be doing much better.

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.

After the election of Donald Trump, the iShares MSCI Brazil Capped ETF (EWZ) slipped.