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Latam Equities Show Limited Movement as Investors Analyze Earnings; Copper Producers’ Forex Gains

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Investors closely monitor Latam equities amidst quarterly earnings reports, while copper producers reap the benefits of foreign exchange gains.

Latin American stocks remained steady on Wednesday as investors evaluated corporate earnings from Brazil and Mexico. The region’s currencies, particularly those of copper producers, saw gains after China implemented fiscal stimulus measures. China’s parliament approved a $137 billion sovereign bond issuance to aid flood-hit areas and improve infrastructure. This news has boosted demand outlook for copper, leading to a rise in currencies such as the Chilean peso and the Peruvian sol. However, the Chilean peso and the Peruvian sol have been underperforming due to concerns over China’s property sector and its impact on copper demand. The Brazilian real and the Mexican peso both experienced slight declines, while the Bovespa index in Brazil fell 0.2%. Notable individual movers included WEG, which saw an 8.1% drop in revenue in the third quarter, and Santander Brasil, which reported a 12.5% decline in net profit. Meanwhile, Alsea, a restaurant chain operator in Mexico, posted a 56% increase in net profit, leading to a 4.4% gain in its shares. Volaris, a low-cost airline in Mexico, reported weak third-quarter results, resulting in a 1.8% decline in its shares. In Turkey, the benchmark stock index fell 7.0% and reached a two-month low, triggering a market-wide circuit breaker.

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