A roundup of Tuesday’s stock market results from across the region
🗽 On Wall Street:
U.S. stock markets shook off their bad start to the week and the three main indexes returned to gains, driven by a strong performance by stocks such as Apple (AAPL) and Microsoft (MSFT).
The S&P 500 (SPX) gained 0.84%, while the Dow Jones Industrials (INDU) rose 1.06%. The Nasdaq Composite (CCMPDL) advanced 1.28%.
“All markets, not just the stock market, are digesting a relatively quick turnaround by the Fed. I would say it’s gone relatively well, all things considered,” Brian Nick, chief investment strategist at Nuveen, told Bloomberg.
Despite the recovery, all eyes will be on the U.S. inflation data due out this week. Investors are expecting an increase of more than 7%, the highest since the early 1980s, which would give the Federal Reserve another reason to tighten monetary policy.
🔑 The Day’s Key Movements:
Oil accumulated two sessions of declines and WTI dropped below $90, while investors’ eyes are on the negotiations toward a nuclear agreement with Iran, and which could reactivate the flow of crude oil from that country onto the international markets.
Russia’s chief nuclear negotiator, Mikhail Ulyanov, told Moscow’s Kommersant newspaper that talks to resume the nuclear deal are approaching the finish line, with a final document on the table.
The possibility of more Iranian oil comes just as global supply faces difficulties in keeping pace with demand as economies are reviving.
🥇 The Leader:
The Peruvian stock market had by far the best performance among Latin American stock exchanges and the S&P/BVL Peru (SPBLPGPT) rose 4.54%, its best day since September 2021. The good stock market performance came in the wake of the announcement by Compañía de Minas Buenaventura (BUENAVC1) that it will sell its entire stake in the Yanacocha and La Zanja gold mines.
The transaction, as reported by the company, will total $450 million and was agreed with Newmont, one of the largest gold miners in the world.
Buenaventura’s shares gained 7.12%, and the euphoria spread to other mining companies such as Volcán Cia (VOLCABC1), Unión Andina de Cementos (UNACEMC1) and Sociedad Minera El Brocal (BROCALI1).
The good performance of the stock market also followed the announcement by Peru’s President Pedro Castillo that he would announce his new cabinet Tuesday and put an end to the uncertainty brought about by the changes he has made in the last few weeks. The new cabinet will meet for the first time on Wednesday, Castillo said.
The Mexican stock exchange resumed operations after Monday’s holiday and closed with gains after rising 2.03%.
📉 A Bad Day:
Argentina’s Merval (MERVAL) index saw the sharpest losses in the region, down 1.17% drop. Volatility in the Argentine stock market is a result of the uncertainty generated by the agreement in principle with the International Monetary Fund, and which still has to be ratified by Congress.
The shares of Edenor (EDN), Grupo Supervielle (SUPV) and Transportadora de Gas del Sur (TGSU2) were among the worst performers on Tuesday.
“Another relevant event was the closing of Alberto Fernández’s presidential tour, in which he met with the Prime Minister of Barbados, Mia Mottley. The main topics were: climate change, technical cooperation, international financial architecture and gender equality,” wrote Priscila Bruno, an analyst at Rava Bursátil.
Brazil’s Ibovespa (IBOV) rose by 0.21%.
Brazil’s central bank refrained from giving specific guidance on how quickly it will slow the pace of interest rate hikes in the minutes of its latest meeting.
🍝 For the Dinner Table Debate:
If you like reading, May 3 may be a date to save, when Bill Gates’ book is scheduled to be launched with a more than timely theme: the pandemic.
The text by the philanthropist and founder of Microsoft will cover lessons learned, as well as the tools and innovations needed to save lives and stop pathogens early. In short: how to make Covid-19 the last pandemic.
“Every time I see the suffering that Covid-19 has created, every time I read about the latest death toll or hear about someone who has lost their job or I drive by a school that is closed, I can’t help but think: we don’t have to do this again,” Gates wrote in a blog post announcing the book’s publication.
Gates will also give his thoughts on vaccines and how he has felt about becoming the target of conspiracy theories.
