US Futures Reduce Losses, Stock Markets Advance: Chile Today

(Bloomberg) – US futures cut losses after dispute over maintenance of emergency loan programs between the Federal Reserve and the US Treasury European stocks are heading into their third week of advance. 10-year Treasury yield rises alongside Bloomberg Dollar index and MSCI emerging currencies index. Copper on the rise along with other industrial metals.

In Chile, coronavirus cases rose by 1,455 to 536,012 and the number of deaths increased by 58 to 14,955.

CLP closed stable at 757.7 / USD. The S&P Ipsa fell 2%, led by Cencosud Shopping (-4.3%) and Entel (-4.1%); read here Inside Andes, other FX columns and Chile Renta Fija weekly newsletter.

All events in local time.

At 7:19 am, this was the performance of the main indices:

  • 10-year Treasury Yield + 1bp to 0.84%
  • EUR -0,2% vs USD a 1,1854
  • Active copper contract + 1.2% to $ 3,258
  • WTI Crude Futures stable at $ 41.76
  • Índice Bloomberg Commodities +0,7%
  • S&P 500 Futures stable
  • STOXX Europe 600 +0,6%
  • Shanghai SE Composite + 0,4%

INTERNATIONAL:

  • U.S. Treasury Secretary Steven Mnuchin on Thursday called for the return of unspent funds from the Federal Reserve’s emergency loans, but the central bank refused, saying the programs played a vital role.
    • Mnuchin, in a letter to Fed Chairman Jerome Powell, called for a 90-day extension for four of the central bank’s emergency loan programs, but requested that other programs expire on Dec. 31 and the Fed return $ 455 billion. to the Treasury so Congress can spend the money on something else
    • “The Federal Reserve would prefer that the full suite of emergency loans established during the coronavirus pandemic continue to fulfill its important role in supporting our still tense and vulnerable economy,” the Fed said in a brief statement.
  • The European Union warned that the United Kingdom has not moved enough to overcome the three main obstacles to a post-Brexit trade deal, and three of the bloc’s leaders called for contingency plans to be stepped up in case it is not achieved. one
    • At a meeting in Brussels on Friday, representatives of the 27 EU member states were informed that progress has been slow and that negotiations could now extend into December, according to people at the meeting who asked not to be identified.
  • Mexico registered 576 new deaths from covid-19 on Thursday, making it the fourth country where the number of the virus has exceeded 100,000 deaths
    • The total number of cases increased from 4,472 to 1,019,543, according to data published by the Ministry of Health

NEWS:

  • Plaza started to buy at Credicorp Capital; PO CLP1.490
  • Chile sells USD2,110m in ‘social bonds’ with expiration. in 2028 and 2033
  • Forus will be Under Armor’s exclusive distributor in Chile
  • Costa Verde sets new price, term to package Latam shares
  • SQM advances in lithium production increase in view of more demand
  • Corredora STF Capital enters the Electronic Stock Exchange in Chile
  • Five companies apply for licenses to operate 5G in Chile
  • Grupo Patio buys its first asset in Mexico: DF
  • Second withdrawal of 10%: government project manages to entangle opposition reform: Third

TO BE PENDING:

  • In Chile:
  • International:
    • They do not publish relevant macro data in the US until Nov. 2. 3
    • Agenda Fed:
      • 10:30 am: Kaplan (Dallas) speaks at conference on energy and the economy
      • 11am: Barkin (Richmond) and Bostic (Atlanta) talk about growth
      • 3:30 pm: George (Kansas City) talks about energy and the economy at the same event as Kaplan
  • Relevant agendas:
    • South America
    • EE.UU.
    • Mexico
    • Brazil
    • Europe

COMMENTARY

  • Oxford Economics Recovery Tracker Points to Additional Fourth Quarter Growth in Latin America
    • Brazil experienced the largest rebound, while Peru saw the lowest. Argentina accumulated three consecutive wins
    • Colombia remains ahead of Mexico and Chile, but in these three countries the indexes remain around 20% below February
    • Mobility continues to be the best indicator of GDP and the first data point to a 3.1% QoQ increase in Latin America’s GDP
    • All countries will see more growth in Q4 than Q3, except Chile, which has experienced a delayed rebound

©2020 Bloomberg L.P.

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