The dreaded negative reaction of investors to the draft of the new Constitution did not occur, at least until local noon.
At the close of this note the strongest impact was on the peso, which fell again against the dollar, but moderately and was at $859 versus the U.S. currency and Chilean debt and bonds were also trading in the red.
Of course, for some economists, it is time for the Central Bank to start evaluating whether exchange rate intervention is necessary to prevent the exchange rate from becoming another factor of inflationary pressure.
In the stock market, the story was different: Chilean stocks rose moderately, decoupled from Wall Street and European stock markets. The consensus is that what was approved in the Plenary introduces new uncertainties for investors and reduces incentives for investment, affecting long-term growth. But at least for today, market players seem to be waiting for the constituent process to conclude in order to be clearer about the new economic scenario. Another look is that investors see in the draft something difficult to implement and also look at the surveys that point to the probability of rejection.
In the rest of the region, Latin American stock markets moved positively, as did Chile, although this one in a more moderate way. In short, the region decoupled from what was happening in the northern hemisphere.
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