(Updated at 1510 GMT) * Brazil lifts 2025 inflation projections to 4% * Brazil's Suzano up on dropping plan to buy International Paper * Turkey, Czech announce monetary policy decisions * Rand drops on reported discord over cabinet posts * Stocks, FX off 0.5% each By Johann M Cherian June 27 (Reuters) - Most Latin American currencies and equities slipped on Thursday, while investors braced for an interest rate decision out of Mexico and exercised caution following a change in inflation forecasts out of Brazil. Mexico's peso slipped 0.1% ahead of a central bank decision due at 1900 GMT. A majority of economists polled by Reuters expect borrowing costs to be left unchanged at 11% against the backdrop of persistent price pressures and as the U.S. Federal Reserve delays its monetary easing cycle. "Regardless of the upcoming Fed's decisions, we continue to think that Banxico has ample room to resume the rate cut cycle after the first cut back in March," a group of economists led by Javier Amador at BBVA research said. "Doves will likely opt for delaying an uneasy debate with the ultra hawks and vote for a pause driven by the recent exchange rate volatility and political uncertainty." Cabinet appointments in President-elect Claudia Sheinbaum's government were also on tap through the day. The peso had depreciated significantly and is down over 7.4% year-to-date following her landslide win earlier in the month. MSCI's index tracking Latam currencies slipped 0.5%, with Brazil's real hovering at levels last seen in January 2022 it hit in the previous session. Brazil's local central bank upped its 2025 inflation forecasts to 4%, citing stronger-than-expected activity which led it to halt interest rate cuts earlier this month. The regulator has a continuous inflation target of 3%. Currency of copper producers, Chile and Peru strengthened 0.3% each, as prices of the red-metal rebounded from a two-month low. On the equities front, MSCI's index tracking Latin American stocks slipped 0.5%. Brazil's Bovespa index climbed 0.6%, with Suzano jumping 13.8% after the pulpmaker said it has terminated talks to buy International Paper. Petrobras climbed 1% after brokerage Bank of America upgraded the oil firm to "buy". Equatorial advanced 5% after the power company was the only bidder for hold a 15% stake in water utility Sabesp , which is currently under a privatization process. Elsewhere, Bolivia's boliviano edged up 0.1% in thin trades after an attempted coup was thwarted. Czech's koruna weakened 0.4% to an eight-week low against the euro and yield on the 5-year bond slipped 3 basis points after the local central bank trimmed its benchmark interest rate by 50 basis points to 4.75%, more than expectations. Turkey's lira showed little reaction after the central bank left its main interest rate unchanged at 50%. South Africa's rand depreciated over 1% on reports of major disagreements over cabinet posts. Kenya's shilling slipped as civil unrest continued even after the president bowed to pressure to withdraw a tax hike bill. Key Latin American stock indexes and currencies: Latin American market prices from Reuters Stock indexes Latest Daily % change MSCI Emerging Markets 1081.78 -0.41 MSCI LatAm 2169.67 -0.56 Brazil Bovespa 123231.15 0.48 Mexico IPC 52171.95 -0.56 Chile IPSA 6491.47 -0.32 Argentina MerVal 1588852.94 0.913 Colombia COLCAP 1373.33 0.32 Currencies Latest Daily % change Brazil real 5.5314 -0.24 Mexico peso 18.3450 -0.11 Chile peso 950.1 0.06 Colombia peso 4161.6 -0.41 Peru sol 3.82 -0.05 Argentina peso 911.0000 0.11 (interbank) Argentina peso 1330 2.63 (parallel) (Reporting by Johann M Cherian in Bengaluru; Editing by Alistair Bell)
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Other stock markets
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5-day change | 1st Jan Change | ||
43.15 USD | -0.23% | -6.36% | +19.36% |
06-28 | S&P 500 Edges Down on Week, Still Logs Strong Gain for First Half of 2024 | MT |
06-28 | Seaport Upgrades International Paper to Buy From Neutral, Price Target at $52 | MT |
Stocks mentioned in the article
Price
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Change
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5d. change
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Capi.
| ||
---|---|---|---|---|---|
123,907 PTS | -0.32% | +2.11% | - | ||
2,108 PTS | +1.63% | -0.65% | - | ||
676.7 PTS | +0.86% | -1.03% | - | ||
74.97 BRL | -7.84% | +0.16% | 9.23B | ||
57.01 BRL | -1.59% | +16.70% | 13.18B | ||
43.15 USD | -0.23% | -6.36% | 14.99B | ||
39.77 USD | +1.32% | +0.71% | 311B | ||
38.05 BRL | +1.04% | +3.62% | 91.6B | ||
32.99 TRY | +1.05% | +0.77% | - | ||
30.69 BRL | -3.22% | +4.85% | 6.36B | ||
5.996 BRL | +1.74% | +3.29% | - | ||
EPS Revisions
1st Jan change | Capi. | |
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+19.36% | 14.99B | |
+12.06% | 16.27B | |
+171.72% | 14.43B | |
+21.05% | 12.97B | |
+15.94% | 11.55B | |
+1.84% | 10.76B | |
-10.21% | 8.46B | |
+6.33% | 8.05B | |
+37.00% | 7.33B | |
-14.99% | 7B |
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