Key Facts
Brazil’s real weakened sharply past 5.16 against the dollar mirroring a broad flight from regional assets as the Ibovespa suffered its sixth straight drop and the Merval in Buenos Aires plunged hard, while Colombia’s COLCAP managed a robust gain, defying the regional gloom.
Argentina’s Merval index endured the session’s heaviest blow skidding heavily as investors braced for today’s closely watched inflation print, with local assets pricing in deep uncertainty ahead of the official data release.
Colombia’s COLCAP index shone as the sole bright spot in the region climbing firmly in a counter-trend move that suggests selective bargain hunting or rotation into a market that had been previously lagging, making it the outlier on a deeply red board.
The Japanese yen and Asian equities set a cautious tone overnight as Japan’s producer price index came in above forecasts for July, keeping alive the prospect of tighter policy from the Bank of Japan and nudging US futures slightly lower in the early Wednesday trade.
