The Central Bank of Chile unanimously decided to keep the policy interest rate at 5% at its March meeting. The Board mentioned that global economic uncertainty has risen since the last meeting due to escalating geopolitical risks and new US tariff announcements, along with responses from affected countries. This has particularly impacted U.S. growth prospects and raised inflation expectations, leading the Federal Reserve to pause its rate-cutting cycle. Global financial markets have reacted differently, with U.S. equities declining while European and Chinese stocks have risen. The weakening U.S. dollar has boosted commodity prices, with copper rising 8% since the last meeting, while oil prices have dropped around 9% due to global growth concerns. In Chile, financial markets have followed broader emerging-market trends, with lower interest rates, a 7% appreciation of the peso, and a 6% gain in the IPSA index.

Chile Leaves Interest Rate at 5%

The Ibovespa gained 0.2% to close at 132,190 points on Friday, securing a 2.5% weekly rise as investors reacted positively to Brazil’s 2025 budget approval and central bank monetary policy signals. On Thursday, Congress passed the 2025 budget bill, forecasting a primary surplus of BRL 15 billion, significantly higher than the BRL 3.7 billion initially expected in August, due to revised revenue projections. Meanwhile, Brazil’s central bank raised interest rates by 100 bps for the third consecutive meeting, maintaining its policy stance but signaling a potential slowdown in future hikes amid signs of economic deceleration. However, concerns over an intensifying global trade war and evolving U.S. trade policies limited gains. President Trump mentioned "flexibility" on his reciprocal tariff plan, although he opposed making exceptions for the new duties. Among individual stocks, Hypera surged 3.2%, despite reporting a 74.2% drop in net income, citing efforts to optimize its working capital.

Ibovespa Posts 2.5% Weekly Gain

The S&P/TSX Composite index lost 0.4% to close below the 25,000 mark on Friday, reflecting another weak session as mining stocks weighed on performance. Investors continued to evaluate domestic growth risks amid ongoing trade tensions with the US. The Bank of Canada highlighted growing uncertainty in its economic outlook due to the unpredictability of US tariff threats, which could impact prices for Canadian businesses and consumers, dampening demand for riskier assets in Toronto. Stocks slightly rebounded after President Trump signaled "flexibility" on his reciprocal tariff plan, despite opposing exceptions for upcoming duties. Political uncertainty also increased with the potential for Prime Minister elections next month following PM Trudeau's resignation. Precious metal miners were among the hardest hit, as gold prices pulled back from record highs, causing Barrick to drop 2.3%. On the week, the Canadian benchmark advanced over 1%

TSX Ticks Lower, But Posts Weekly Gain

Major U.S. indices pared their losses to closed in the positive territory on Friday, as President Trump suggested some “flexibility” on tariffs, while several megacap stocks made a recovery. The session was expected to be volatile due to a "quadruple witching" event, where stock options, index futures, index options, and single-stock futures all expired. The S&P 500 edged higher by 0.1%, the Dow Jones added 31 points, and the Nasdaq gained 0.5%. While Trump mentioned "flexibility" in his tariff stance, he also emphasized that tariffs would be reciprocal, with countries imposing charges on the U.S. facing similar measures in return. However, market pressure persisted due to disappointing earnings forecasts. FedEx plunged 6.4% after cutting its earnings outlook amid industrial weakness, while Nike dropped 5.5% on lower sales projections. On the week, the S&P 500 slightly higher, hardly broke 4-weekly losses, the Dow added 0.7% and the Nasdaq ended mostly muted.

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Chile Leaves Interest Rate at 5%

Ibovespa Posts 2.5% Weekly Gain

TSX Ticks Lower, But Posts Weekly Gain

US Stocks Edged Higher