Latin American Assets Trade Mixed Amid Middle Eastern Uncertainty

Latin American assets traded mixed on Monday as investors awaited US inflation data for clues on Federal Reserve monetary policy. The region's stocks and currencies were affected by uncertainty in the Middle East, where oil prices rose after Tehran reiterated it would not reopen the Strait of Hormuz until Washington met its demands.

Mexico was among the biggest laggards, with its stocks falling 0.59% and peso dipping 0.1%. Colombian equities rebounded from early losses triggered by an earthquake that killed over 100 people and caused widespread damage.

The European Union imposed tariffs on terephthalic acid made in South Korea and Mexico to protect producers in Belgium, Poland, and Spain. This move may impact the region's chemical industry.

President Donald Trump's administration plans to provide $1 billion in security assistance to Colombia's new government under right-wing President Abelardo De La Espriella. The US State Department said this would mark a 'sharp break' from the previous relationship under outgoing President Gustavo Petro.