Do More With Reuters
Partner Services

Chile peso, stocks gain with global markets

Mon Nov 10, 2008 10:59pm IST
 
Email | Print | | Single Page
[-] Text [+]

SANTIAGO, Nov 10 (Reuters) - Chile's peso traded stronger against the dollar on Monday, while stocks moved higher as global markets advanced following news of a $586 billion Chinese stimulus plan.

The peso CLP=CL CHILJ appreciated 0.71 percent to close at 633.30/633.80 per dollar, compared with Friday's close at 637.80/638.30, paring the peso's year-to-date loss against the greenback to about 21 percent.

"The stimulus plan unleashed a chain reaction in world markets, beginning in Asia and it also pushed up prices for raw materials, including copper," one trader said.

Prices for copper, Chile's leading export and a pillar of the local economy, surged over 10 percent on Monday before edging back to a gain of over 3 percent. Prices for the red metal have fallen by more than half since July, when it hit $4 per pound, supported largely by strong demand from China.

Gains in emerging currencies, stock markets and commodities -- seen as indicators of investor risk tolerance -- are usually accompanied by a decline in demand for dollars.

"Unfortunately, markets remain very volatile and overreact to any positive or negative news," the trader said.

Chile's blue-chip IPSA index .IPSA traded 1.73 percent higher at 2,619 points in afternoon trade, while the all-market IGPA index .IGPA advanced 1.34 percent to 12,304 points.

Blue-chip gains outnumbered losses by nearly 5 to 1 in afternoon trade, led by raw materials and bank stocks.

Steelmaker and iron ore producer CAP CAP.SN saw its shares surge 8.1 percent in afternoon trade, while fertilizer exporter Soquimich SQM_pb.SN, also the world's leading producer of lithium and iodine, advanced 3.1 percent.  Continued...

People light candles at a vigil to commemorate the victims of last year's militant attacks in Mumbai, in front of the India Gate in New Delhi November 26, 2009. Mumbai held tearful memorials and police staged a show of strength on Thursday as India's financial hub marked the first anniversary of militant raids that killed 166 people and pushed up tensions with Pakistan. REUTERS/Rupak De Chowdhuri
One Year Later

Mumbai held tearful memorials and police staged a show of strength as it marked the first anniversary of militant raids that killed 166 people and pushed up tensions with Pakistan.  Slideshow | Full Coverage