The Swiss bank said that the risks for the presidential election outcome are already assimilated and that the Mexican peso looks cheap.
Mexico is in a better situation for the Swiss bank UBS, since the financial institution recommended the purchase of papers from the country, highlighting that the risks of the Mexican presidential election were already assimilated, and the peso looked cheaper.
On Thursday, the bank suggested its clients acquire shares in emerging markets, declaring that it was “time to buy” for that asset class despite growing concern for Brazil, the largest economy in Latin America.
UBS analysts showed renewed optimism towards Europe, the Middle East and Africa. They granted him a recommendation to “overweight” the region, directly from “underweight”.
IN ADDITION TO MEXICO
Among individual recommendations, the bank improved to “overweight” the roles of Poland, the largest economy in Central Europe.
The analysts also raised their recommendation for Colombia to “neutral”.
“We remain positive towards the actions of emerging markets based on the market context/macro factors of UBS,” said the strategist’s team. “We see this as a” Buy Time “.
However, the bank downgraded its recommendation for Brazil’s stock to “neutral,” based on a significant deterioration in the fundamentals of the local market, large reductions in its growth and widespread political uncertainty before the October presidential election.