BRAZIL: With the strong support from the global backdrop as US equity market recovered and commodity prices gained ground. BRL was up 0.54% to close at 3.1872. BCB sold the usual 5K in FX reverse swaps. DI rates however had mixed performance as the market adjusted bets for Wednesday Copom. Jan 17 was unchanged at 13.64% and Jan 21 was down 6bps to 11.19% bringing the inversion spread up to 245. 5Y CDS were down 4bps to 266. Ibovespa rallied by 1.75% to close at 63,795, the highest level sine April 2012. August retail sales data was softer than expected at -0.6%m/m, -5.5%y/y with broad measure at -2.0%m/m, -7.7%y/y.
MEXICO: MXN kept the strong trend seen this week as US equity market recovered and USD global index continued to slide. MXN was the regional outperformer to close 1.4% stronger at 18.6125. The Mbono/UST 10yr spread was unchanged at 429. 1y IRS fell by 2bps to 5.40%. 5y CDS was lower by 2bps to 146. MEXBOLSA was stronger by 0.94% top close at 48,106 following US equity positive performance. International reserves dropped to US$175.5bn. Cetes auction showed lower rates across the board.
ARGENTINA: ARS was not helped by stronger global backdrop and dropped 0.04% to 15.205 on lower export receipts. Bonar 24 was unchanged at 1820.0. 5y CDS was down by 3bps to 395. Merval was up by 0.95% to 17,832.
CHILE: Supportive global backdrop helped CLP to keep gains below 670, despite soft copper prices. CLP finally closed 0.28% stronger at 668.33. 1y IRS was unchanged at 3.27%. 5Y CDS closed down by 1bp to 90. IPSA rallied 1.2%, the sixth day in a row, to close at 4,202. As expected the BCCH left the overnight rate target unchanged at 3.5%.
COLOMBIA: came back from long weekend to find a supportive global market to help a 0.47% gain to 2906.46. 1Y IRS was down by 2bps to 6.81%. 5Y CDS fell by 2bps to 179. IGBC gained 0.57% to 10,007. September consumer confidence was higher than expected at -2.1. August trade balance was marginally weaker than expected at -US$1.03bn. August Industrial production was way over expectations at 9.4%y/y, while retail sales was weaker than expected at -1.9%y/y.
PERU: PEN benefitted from supportive global backdrop and local demand for PEN to pay taxes and gained 0.45% to close at 3.3823. BCRP did not intervene in a day where no USD linked paper matured. 1y FX implied swap was up by 51bps to 4.89%. 5y CDS dropped 2bps to 102.