Latin American assets rose as hopes for peace in the Middle East boosted risk appetite.

With growing hopes for a resolution to the months-long conflict in the Middle East, the market is showing a warming preference for risk. On Friday, most Latin American assets experienced a comprehensive increase in a global bullish trend. The MSCI index tracking Latin American stocks rose by 1.8%, with the corresponding currency index rising by 1.2%. Both indexes are expected to record gains this week. The Brazilian Bovespa stock index fell slightly by 0.2%, while the real appreciated by 0.6%. Following reaching its highest level in over five years on Thursday, the Colombian peso fell by 0.3% this week. Similarly, buoyed by hopes for a peace agreement in the Middle East, sovereign bonds of major oil-importing emerging economies also saw an increase. Tradeweb data shows that the price of Kenyan sovereign bonds rose by more than 2 cents.