Brazilian asset sell-off drags down Latin American market, US-Iran peace talks take center stage.

On May 29th, most Latin American assets experienced a slowdown. Investors are currently closely watching the potential peace agreement between the US and Iran, weighing the cautious optimism brought by geopolitical events against the backdrop of a downturn in the Latin American markets led by Brazil. The MSCI Latin American currency index remained basically flat, but is expected to record a slight increase for the month. In contrast, the more broad Latin American stock index saw its most significant monthly decline since the end of 2024. The Brazilian real to US dollar exchange rate remained relatively stable, but is set to record its worst monthly performance of the year. The Brazilian benchmark stock index also fell by 0.7% on the day, marking its steepest monthly drop since February 2023.