Amidst a quiet day due to the holiday in the USA, the Latin American markets trade with mixed performance.

On a day of low activity due to the Presidents’ Day holiday on February 19th, LATAM markets are trading without a clear trend and without major news affecting asset prices.

Argentina, Brazil, Colombia, and Mexico are trading without a clear trend, experiencing minor fluctuations of less than 1%.

The Bovespa Index had a movement -0.06%, the MERVAL index went up 0.3%, while Mexico and Colombia remained flat.

This week, significant developments are anticipated in Mexico regarding the resolution of the truck drivers’ strike, in Colombia concerning the political movements of Gustavo Petro, and in Brazil regarding the judicial proceedings involving former President Jair Bolsonaro.

These events have the potential to impact their respective countries’ political landscapes, economic outlooks, and investor sentiments.

A holiday in the United States often reverberates across global financial markets, particularly in Latin America, owing to the interconnected nature of the world economy. With the US markets closed, investors and financial institutions worldwide, including those in Latin America, experience a reduction in trading activity and liquidity.

The US markets serve as a benchmark and a source of guidance for many investors, influencing their trading decisions and market sentiment. Thus, when US markets are inactive due to holidays like Presidents’ Day, investors in Latin American markets may adopt a more cautious stance, leading to subdued trading volumes.

With US markets closed, there is typically reduced participation from major investors, including institutional investors and hedge funds, who may have significant exposure to Latin American markets. Without the active participation of these investors, trading volumes tend to decline, leading to lower liquidity.

The day following a holiday, especially in Latin American markets after a US holiday like Presidents’ Day, typically witnesses a resurgence in trading activity and market participation.

In essence, the day following a holiday in the US tends to mark a return to normalcy in Latin American markets, characterized by heightened activity, increased liquidity, and a renewed focus on market dynamics both domestically and internationally.