LatAm Assets Rise on US-Iran Peace Deal Hopes

LatAm Assets Advance as Markets Cheer US-Iran Peace Deal Prospects

Most Latin American currencies appreciated against the dollar on Monday, while stocks were broadly higher as investors welcomed signs of progress on a U.S.-Iran peace deal, which weakened oil prices.

Key Points

Moody's lifts South Africa outlook to positive. Poll shows support surge for Colombian right-wing candidate. Mexico to start USMCA negotiations with the US. Chilean stocks set for biggest intraday jump since April 8.

MSCI's index tracking Latin American currencies gained 0.3%, while the stocks equivalent was up 0.7%. U.S. Secretary of State Marco Rubio told reporters that the U.S. would give diplomacy every chance to succeed, while President Donald Trump said talks were going nicely. Oil prices plunged almost 6% to below $100 a barrel.

South African assets soared with the rand appreciating 1.1% and equities surging 2.7%. Colombia's peso appreciated 1.3% to its highest level since April 30. Chile's peso gained 0.7% and stocks rose 2.4%. Currencies in Mexico and Brazil appreciated 0.2% and 0.4% respectively. In Bolivia, President Rodrigo Paz said he will cut his salary by 50% to pacify protests.