Chile

Executive Summary Chile: Stocks Rally When Inflation Rolls Over Chile: Stocks Rally When Inflation Rolls Over…

Highlights Odds favor left-wing candidate Gabriel Boric to win the second round of this weekend’s presidential elections. If this scenario takes place, Chilean equities and the currency will sell off considerably. Nevertheless, once the dust settles, a buying opportunity might emerge in Chile…

Dear Client, Next week, we will be sending you BCA Research’s Annual Outlook, featuring long-time BCA client Mr. X, who visits towards the end of each year to discuss the economic, financial and commodity market outlook for the year ahead. All the best, Bob Ryan Chief Commodity & Energy…

Highlights Gabriel Boric – a popular independent left-wing candidate – will likely win the presidential elections. Chile’s financial markets will remain very turbulent with a downward bias until the second voting round in mid-December. We are downgrading Chilean stocks to underweight within…

Highlights The US Climate Prediction Center gives ~ 70% odds another La Niña will form in the August – October interval and will continue through winter 2021-22. This will be a second-year La Niña if it forms, and will raise the odds of a repeat of last winter's cold weather in the Northern…

Highlights The US government issued its first-ever water-shortage declaration for the Colorado River basin in August, due to historically low water levels at the major reservoirs fed by the river (Chart of the Week). The drought producing the water shortage was connected to climate change by US…

Highlights Going into the new crop year, we expect the course of the broad trade-weighted USD to dictate the path taken by grain and bean prices (Chart of the Week). Higher corn stocks in the coming crop year, flat wheat stocks and lower rice stocks will leave grain markets mostly balanced vs…

Highlights The rapid spread of the COVID-19 delta variant in Asia will re-focus precious metals markets anew on the possibility of another round of lockdowns and the implications for demand, particularly in Greater China and India, which account for 33% and 12% of global physical demand for…