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Chile's Markets Cool After Post-Election Surge As Peso Slips And IPSA Pauses
(MENAFN- The Rio Times) The Chilean peso surrendered part of its election-fuelled gains on Friday, with the dollar closing near CLP 940 after briefly trading closer to 923 earlier in the week.
The move reflected a firmer global dollar- the Dollar Index is hovering around the 100 mark again- and a mild pullback in copper, which remains above US$10,700 per tonne but has lost some momentum after a powerful rally.
Even after Friday's move, the peso is still among the region's better performers in November.
Investors are recalibrating rather than fleeing: markets have already priced in a more market-friendly policy mix after the first-round result.
They are now waiting for December's run-off and fresh guidance from the Central Bank, which is cautiously advancing its rate-cutting cycle as inflation drifts toward target.
Technically, USD/CLP shows a short-term relief rally inside a broader downtrend. On the four-hour chart the pair has bounced from the low-930s, with a bullish MACD crossover and RSI recovering from oversold territory, pointing to a range trade between roughly 930 and 950.
Chile's Markets Cool After Post-Election Surge As Peso Slips And IPSA Pauses
The daily chart still tilts in favour of a somewhat stronger peso over time, but the latest bounce underlines how sensitive Chile remains to swings in the global dollar and copper.
Equities told a similar“pause, not panic” story. The S&P IPSA index edged up about 0.3% to just under 9,830 points, recovering in the closing auction after spending much of the session in the red and staying shy of the 10,000-point psychological barrier hit earlier in the week.
Rotation beneath the surface was sharp. Pension and metals names led the advance: CUPRUM rose about 7%, PLANVITAL 4.5%, MOLYMET 3.4%, CALICHERAA 3.1% and PROVIDA 2.8%.
The laggards were mostly utilities and basic materials: COLBUN fell 3.5%, ALMENDRAL 3.2%, ENEL CHILE 3.1%, Minera 2.9% and Pucobre 2.8%.
Weekly and daily charts still show a powerful structural uptrend in the IPSA, but with RSI in overbought territory and year-to-date gains near 50%, the market is clearly in digestion mode.
For now, Chile's message to investors is that orthodox policy and credible institutions remain rewarded- just not at any price.
The move reflected a firmer global dollar- the Dollar Index is hovering around the 100 mark again- and a mild pullback in copper, which remains above US$10,700 per tonne but has lost some momentum after a powerful rally.
Even after Friday's move, the peso is still among the region's better performers in November.
Investors are recalibrating rather than fleeing: markets have already priced in a more market-friendly policy mix after the first-round result.
They are now waiting for December's run-off and fresh guidance from the Central Bank, which is cautiously advancing its rate-cutting cycle as inflation drifts toward target.
Technically, USD/CLP shows a short-term relief rally inside a broader downtrend. On the four-hour chart the pair has bounced from the low-930s, with a bullish MACD crossover and RSI recovering from oversold territory, pointing to a range trade between roughly 930 and 950.
Chile's Markets Cool After Post-Election Surge As Peso Slips And IPSA Pauses
The daily chart still tilts in favour of a somewhat stronger peso over time, but the latest bounce underlines how sensitive Chile remains to swings in the global dollar and copper.
Equities told a similar“pause, not panic” story. The S&P IPSA index edged up about 0.3% to just under 9,830 points, recovering in the closing auction after spending much of the session in the red and staying shy of the 10,000-point psychological barrier hit earlier in the week.
Rotation beneath the surface was sharp. Pension and metals names led the advance: CUPRUM rose about 7%, PLANVITAL 4.5%, MOLYMET 3.4%, CALICHERAA 3.1% and PROVIDA 2.8%.
The laggards were mostly utilities and basic materials: COLBUN fell 3.5%, ALMENDRAL 3.2%, ENEL CHILE 3.1%, Minera 2.9% and Pucobre 2.8%.
Weekly and daily charts still show a powerful structural uptrend in the IPSA, but with RSI in overbought territory and year-to-date gains near 50%, the market is clearly in digestion mode.
For now, Chile's message to investors is that orthodox policy and credible institutions remain rewarded- just not at any price.
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