A breather: After several negative sessions, Latin American markets are rebounding.

After successive days of negativity, Latin American markets are recovering to close the week with mixed returns.

LATAM markets close the week on a slight positive note

The week is closing with mixed results in the Latin American markets. Mexico and Brazil are ending the week with slight gains after experiencing an intraweek journey from higher to lower levels. The iShares MSCI Brazil, the primary ETF tracking the Brazilian market, closes the week with an increase of less than 1%. The same is true for the iShares MSCI Mexico.

On the other hand, the main ETF tracking the Colombian market, the Global X Colombia (GXG), ends the week completely flat, while Argentina concludes with a decline of around 5% for the week.

In what would be a weekly recap, LATAM had a challenging week, with China acting as a negative driver. However, the rebound in the Asian market on Tuesday also led to a significant rise in Latin American markets.

In the case of Mexico, there is some positive momentum due to the macroeconomic trend of nearshoring. Brazil continues to face significant internal judicial conflicts and external disputes with Paraguay regarding energy prices that Brazil purchases.

Colombia remains relatively stable without major developments, but thanks to the rise in oil prices, its main export, it managed to salvage a week that seemed more challenging than usual.

Argentina was the hot spot of the week. There, one of the main laws promoted by Javier Milei, president of Argentina, was rejected in Congress. The reform, which aimed to liberalize Argentina’s economy to a large extent, is a hard blow to governance and economic openness expectations.

The recovery of the Chinese market was an important driver this week. China is the main trading partner and destination of exports from many countries in the Latin American region. The CSI300, the main index of mainland China, has risen by over 4.5% this week, driving up assets related to Latin America and other emerging markets.