Chilean Stocks Rally on Copper Strength as Global Caution Lingers

Santiago-TradingView reported that the S&P IPSA closed at 8,173.81 points on May 7, up 0.76 percent from the prior session. Local shares rose steadily through the day, buoyed by higher copper prices and firm global risk appetite.

The IGPA gained 0.74 percent to 40,681.06, led by utilities and industrials as markets digested fresh data and central bank signals. Chile’s trade surplus widened to $1.923 billion in April, led by a gold export surge and an industrial boost from food goods.

Imports jumped 7.3 percent, driven by capital goods purchases, underscoring domestic demand for machinery and infrastructure. Investors noted that the October-to-March tariff uncertainty has eased slightly, supporting confidence in export sectors.

The Federal Reserve held its benchmark rate at 4.25–4.50 percent, citing elevated uncertainty and balanced inflation risks. Stocks in New York closed higher: the S&P 500 gained 0.43 percent, the Dow rose 0.70 percent, and the Nasdaq added 0.27 percent.

“The overall implications for risk assets are unfavorable,” Evercore ISI’s head of policy and bank strategy warned, reflecting lingering caution on trade and growth.

Five local shares led gains. LATAM Airlines jumped 5.6 percent as passenger traffic rebounded and fuel costs eased. Enel Chile climbed 5.2 percent on stronger power demand forecasts.

Chile’s IPSA Rallies on Renewed Investor Confidence

Enel Generación added 4.8 percent after securing new renewable contracts. Sociedad Química y Minera rose 2.3 percent on lithium price strength. Falabella advanced 2.9 percent on robust retail sales data.

Materials lagged, however: CAP fell 1.3 percent on steel price pressure. Aguas Andinas dipped 2.8 percent amid lower water consumption. Banco de Crédito slipped 1.1 percent on tepid loan growth.

Ripley lost 1.0 percent after underwhelming margin guidance. CMPC declined 0.8 percent amid sluggish pulp shipments. Trading volume on the IPSA rose 9 percent from the prior day, confirming strong participation in the rally.

Foreign inflows into Chilean ETFs reversed a week of outflows, with $45 million entering local equity funds. Global ETFs saw net inflows of $296 billion in Q1 as investors sought defense in bonds and gold.

Technically, the IPSA broke above its 50- and 100-day simple moving averages, signaling bullish momentum. The 20-day exponential moving average crossed above the 50-day line, triggering fresh buying.

Relative Strength Index approached overbought territory at 69, indicating strong trend but cautioning on potential pullbacks. The Moving Average Convergence Divergence histogram expanded, reinforcing upward bias.

Bollinger Bands widened, reflecting heightened volatility. Key support lies at 8,100 and 8,040, with resistance near 8,210. Fibonacci retracements suggest consolidation between 38.2 percent and 50 percent levels if the index corrects.

Local investors await U.S. employment data and Chinese demand signals for base metals. Chile’s central bank meets next week amid 4.9 percent annual inflation and steady 8.7 percent unemployment. Those readings will guide domestic policy and shape the next phase of this rally.