Barclays sees Brazil and Mexico in ‘better’ position in Latin America, despite commodity slump
RIO DE JANEIRO, BRAZIL – The drop in commodity prices in recent days poses new challenges for Latin America. Still, the risk varies by country, and Brazil appears to be in a “relatively better” position, Barclays said in a report.
“Mexico and Brazil appear to be in a relatively better position as they assume lower current account deficits and low domestic demand growth contains potential pressures,” the bank said in a recent report.
According to the bank, the most vulnerable Latin American countries appear to be metals producers Peru and Chile, as copper prices have fallen more than 20 percent since the beginning of the year, which could also translate into lower investment and pose adverse risks to economic activity.
For oil, despite the recent decline, prices are still up more than 30 percent in 2022, and supply disruptions seem to limit potential downside risks to the value of the barrel due to lower demand, suggesting that chances for the region’s oil exporters, such as Colombia or Ecuador, are more limited.
With information from Reuters
Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
+0.54%
172,837.29
+0.54%
65,522.56
-0.38%
11,412.73
-1.09%
2,973,262
-0.73%
2,500.09
-0.42%
60,117.56
-0.21%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 172,837.29 | +0.54% | +21.85% | 171,906.72 | 168,310 | 167,142 | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| SELIC | 14.00% | — | — | — | — | — | |
| PETR4 | 41.64 | -0.05% | +35.19% | 41.66 | 41.97 | 41.15 | 41,499,400 |
| VALE3 | 72.97 | +0.83% | +30.75% | 72.37 | 73.54 | 72.66 | 17,658,000 |
| ITUB4 | 38.60 | -1.03% | +4.57% | 39.00 | 39.34 | 38.39 | 29,487,800 |
| BBDC4 | 16.85 | +0.36% | +3.50% | 16.79 | 16.90 | 16.67 | 19,416,900 |
| BBAS3 | 19.37 | +0.47% | +0.73% | 19.28 | 19.44 | 19.16 | 11,069,200 |
| B3SA3 | 14.26 | -0.21% | +12.73% | 14.29 | 14.47 | 14.11 | 33,037,800 |
| ABEV3 | 14.89 | -0.80% | +21.91% | 15.01 | 15.07 | 14.81 | 16,453,100 |
| WEGE3 | 47.59 | +0.49% | +29.99% | 47.36 | 48.08 | 47.36 | 3,364,600 |
| PRIO3 | 59.14 | -0.19% | +50.67% | 59.25 | 59.81 | 58.74 | 3,325,600 |
| SUZB3 | 41.33 | +2.35% | -23.55% | 40.38 | 41.48 | 40.35 | 3,914,900 |
| RENT3 | 34.68 | -0.09% | +0.84% | 34.71 | 34.96 | 34.35 | 7,979,100 |
| AZZA3 | 15.89 | -2.63% | -53.76% | 16.32 | 16.42 | 15.82 | 1,330,300 |
| CSNA3 | 4.30 | +0.47% | -42.65% | 4.28 | 4.41 | 4.26 | 10,076,100 |
| GGBR4 | 24.69 | +2.19% | +51.38% | 24.16 | 24.85 | 24.18 | 7,047,600 |
| ENEV3 | 24.21 | -1.38% | +70.49% | 24.55 | 24.64 | 23.99 | 9,297,000 |
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