Markets in Brazil and Colombia suffer fresh falls

Following a brief recovery last month, Brazilian and Colombian financial markets have sold off in recent weeks, with both equities and currencies coming under pressure. But elsewhere in Latin America this month, the performance of financial markets has been more mixed. Looking ahead, given that currencies now appear to be fairly valued, we do not expect most to fall much further against the dollar this year. Meanwhile, we are positive on the outlook for the region’s equities.