iShares Latin America 40

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

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.

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 […]

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 […]

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.

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.

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.

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.

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.

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.

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.

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

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

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.

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, […]

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.

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.

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.

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.

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.

The IMF expects the economy of Brazil to fall 3.3% in 2016, following its 3.8% decline in 2015.

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.

Latin American markets were trading higher on August 8—taking cues from a rise in commodity and crude prices globally.

Colombia’s central bank increased the benchmark interest rates for the 11th consecutive meeting by 25 basis points to bring the rate to 7.8%.

As Latin America’s largest country in terms of population and land size, Brazil (EWZ) is becoming a key player among the emerging economies,

The IMF looks at two risk scenarios for estimating the growth forecasts in case of increased risks. The two new scenarios are “downside” and “severe.”

In many Latin American (ILF) (ECH) countries, higher growth and development have been accompanied by loss of competitiveness and a decline in productivity.

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.

Statista data show that the mobile penetration rate in Latin America reached a new high of about 126% in 2015.

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.

The banking sector in Chile got a boost as Banco Santander Chile (BSAC) and Banco De Chile (BCH) rose by more than 1% on June 17.

In May, China imported 430,000 metric tons of unwrought copper and copper products. Although imports fell 4.4%, they have risen more than 18% YoY.

Political upheaval is hardly anything to cheer about in theory, but it can bring optimism, as Brazil’s financial markets have shown in 2016.

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.

While China is the largest copper consumer, it isn’t self-sufficient in its raw material needs.

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 Mexican peso and US dollar are interconnected. Due to bullish forecasts in the US dollar, there are high expectations for the Mexican peso in 2016.

The Mexican peso fell against the US dollar on December 21, 2015. It fell even though October’s retail sales were close to the consensus forecasts.

Southern Copper (SCCO), incorporated in 1952 as Southern Peru Copper, acquired Minera Mexico in 2005 to become the largest mining company in Mexico and Peru.

Southern Copper uses an SX-EW production process for a large portion of its production. The SX-EW process uses acid produced as a byproduct in copper smelting to produce copper.

Mexico was Southern Copper’s (SCCO) biggest market in 2014, followed by Peru, Latin America, the United States, Asia, and Europe.

Southern Copper (SCCO) has managed to hold its ground amid the global sell-off in metal shares. Based on September 15 closing prices, SCCO’s stock is down only about 2% this year.

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.

The Brazilian real underwent massive depreciation of 1.89% against the US dollar on September 10 after the country’s credit rating went from “investment-grade” to “junk” status the night before.

The Brazilian real fell by 0.88% against the US dollar on August 28, 2015. GDP data for the second quarter confirmed a contraction in the economy.

Freeport is pursuing the Cerro Verde mill growth project in Peru. Freeport owns a 53.56% stake in Cerro Verde. It’s expected to become the world’s largest copper concentration capacity.

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

China has only 4% of the world’s copper supply, but it accounts for more than 42% of global copper consumption. Latin America is China’s largest copper supplier.

Higher Chinese copper imports are positive for the global copper industry. Imported copper ore is processed further to produce refined copper.

Spot copper prices on the LME were trading at $6,356 per metric ton on May 15, 2015. Copper lost some heat in the last few trading sessions.

Analysts see copper prices as a reflection of the health of the global economy. For that reason, copper has been dubbed Doctor Copper.