Emerging Markets: Latam currencies muted, stocks mixed as US trade developments cloud outlook

Becle SAB de CV

24/07/2025 20:49

Chile's cenbank to cut rates by 25 bps next week, traders say

Focus on Mexico's Becle, Cemex earnings

Mexico inflation slows in early July, reigniting rate cut expectations

Turkish cenbank returns to easing with big 300-point rate cut

Updates with afternoon levels

By Ankita Yadav, Purvi Agarwal and Ragini Mathur

July 24 (Reuters) - Most Latin American currencies were flat to lower on Thursday, while stocks were mixed as investors monitored whether U.S. President Donald Trump might exempt the region from his proposed sweeping tariffs.

The region had faced some of the least impact from U.S. tariffs when Trump announced reciprocal measures on global economies this year. However, earlier this month, he threatened higher tariffs on both Mexico and Brazil, unnerving investors.

Mexican President Claudia Sheinbaum said on Thursday she hopes to reach an agreement to avoid U.S. tariffs before they take effect next week. Trump has threatened a 30% tariff on the country, excluding goods covered under a free-trade agreement.

Similarly, Brazilian President Luiz Inacio Lula da Silva said that his country is ready to negotiate with the United States, which has proposed a 50% tariff on Brazilian exports.

Both the Brazilian real BRL= and Mexico's peso MXN= were little changed in afternoon trading against a marginally higher dollar.

"There's not yet been any progress on the agreements with Mexico and Brazil, two of the largest economies of Latin America ... even though there's been progress about Asian trade, there is uncertainty about bilateral trade with the U.S. in the region," said Rachel Ziemba, founder of Ziemba Insights.

The currency of copper exporter Chile CLP= dipped 0.2% as a rally in prices of the red metal cooled.

Investors also evaluated a poll showing Chile's central bank could lower its benchmark interest rate by 25 basis points to 4.75% at its next meeting later this month.

Colombia's peso COP= depreciated 0.9%, while Argentina's peso ARS=RASL declined 1%.

On the equities front, Mexican equities .MXX gained 0.9% after data showed headline inflation rate eased in the first half of July, fuelling expectations of further interest rate cuts by the central bank.

"This could ease the central bank's dilemma somewhat. It reflects Mexico's focus on growth amid ongoing uncertainty, potentially giving the central bank more room to maneuver," Ziemba added.

Corporate earnings were also in focus in Mexico.

Cement producer Cemex CEMEXCPO.MX added 3% after posting a double-digit increase in second-quarter profit, while Becle CUERVO.MX, the world's largest tequila producer, said it was seeing early signs of recovery in its main markets, sending its shares up 6.7%.

Meanwhile, Brazilian equities .BVSP slid 1.2%, weighed down by financials, while Argentina's Merval index .MERV gained 1.1%.

Turkey's lira TRYTOM=D4 was little changed, and domestic stocks .XU100 jumped 1% after the local central bank cut interest rates by a larger-than-expected 300 basis points to 43%.

Key Latin American stock indexes and currencies:

Latin American market prices from Reuters
Equities
Latest
Daily % change
MSCI Emerging Markets .MSCIEF
1266.5
0.11
MSCI LatAm .MILA00000PUS
2271.9
0.00
Brazil Bovespa .BVSP
133713.8
-1.22
Mexico IPC .MXX
57005.77
0.93
Chile IPSA .SPIPSA
8147.65
0.09
Argentina Merval .MERV
2107323.43
1.135
Colombia COLCAP .COLCAP
1710.06
-0.36
Currencies
Latest
Daily % change
Brazil real BRL=
5.5182
0.03
Mexico peso MXN=
18.5345
0.01
Chile peso CLP=
950.06
-0.18
Colombia peso COP=
4072.24
-0.96
Peru sol PEN=
3.5412
0.35
Argentina peso (interbank) ARS=RASL
1272
-1.03
Argentina peso (parallel) ARSB=
1300
0.76

 (Reporting by Ankita Yadav, Purvi Agarwal, Ragini Mathur and Johann M Cherian in Bengaluru; Editing by Susan Fenton and Mohammed Safi Shamsi)

 ((Ankita.Yadav@thomsonreuters.com;))