Latin American currency remains stable, stocks surge as markets digest further US trade deals.

Latin American currencies and stocks have been steady and positive as the region absorbs more US trade deals. The Mexican telecom giant America Movil has swung to a profit in Q2, driven by foreign exchange gains. The company's net income rose to $794 million, up from a loss of $1.1 billion in the same period last year. The Mexican government plans stronger trade collaboration with Canada after Trump's tariff threats.

Title: Latin American Markets Show Resilience Amid U.S. Trade Deals and America Movil's Profit Turnaround

Latin American currencies and stocks have demonstrated resilience as the region absorbs more U.S. trade deals. On Wednesday, investors assessed new trade agreements and the potential mitigation of President Donald Trump's tariffs, leading to a mixed trading environment for Latin American currencies and a positive performance for stocks.

The U.S. signed a deal with Japan to lower import duties and secured a $550 billion package of U.S.-bound investment and loans from Tokyo. Additionally, Trump announced a 19% tariff rate for both the Philippines and Indonesia, lower than the rate threatened earlier this month, sending local equities soaring. These developments have sparked optimism among investors, who hope for more trade deals that could potentially mitigate the impact of tariffs.

Stocks in Latin America were broadly higher, with Brazilian stocks up 0.6% and Mexican stocks gaining 1%. Mexico's America Movil (AMX/B) and Banorte (GFNORTE/O) added 3% each, after their upbeat quarterly results. The telecoms giant reported a net profit of $1.19 billion in the second quarter, a stark contrast to a $1.1 billion loss in the same period last year. This turnaround was driven by a $1.1 billion foreign exchange gain, largely due to the weakening U.S. dollar against Latin American currencies [2].

The Brazilian real (USDBRL) strengthened slightly after the government eased total spending curbs and raised its net revenue forecast by $4.87 billion this year. The Mexican peso (USDMXN) firmed 0.4% against the dollar, while most other currencies were little changed in choppy trading. The index tracking regional stocks (.MILA00000PUS) was up 1%, set for its biggest one-day gain since late June.

Investors in Latin America refrained from placing big bets on currencies as they digested the deals. Juan Perez, head of trading at Monex USA, noted that while the uncertainty has not fully gone away, the deals provide mixed signals. Markets are wondering how long the tariffs will remain low for Japan, as they "came out of nowhere" and the ever-changing narrative on tariffs is making investors hesitant.

The Mexican government plans to strengthen trade collaboration with Canada, following Trump's tariff threats. This move is expected to bolster trade relations and provide additional stability to the Mexican economy. The broader context for AMX's success is a telecom sector undergoing a renaissance, driven by 5G expansion, regulatory tailwinds, and M&A opportunities [3].

In conclusion, Latin American markets have shown resilience in the face of U.S. trade deals and tariff uncertainties. America Movil's Q2 2025 profit turnaround highlights the strategic agility of the company in navigating currency dynamics and capitalizing on a broader regional telecom renaissance.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3TK17M:0-latam-fx-steady-stocks-jump-as-markets-absorb-more-us-trade-deals/
[2] https://www.reuters.com/business/media-telecom/mexican-telecoms-giant-america-movil-swings-profit-q2-2025-07-22/
[3] https://www.ainvest.com/news/america-movil-q2-2025-profit-turnaround-strategic-play-latin-america-telecom-renaissance-2507/