Copper prices hit a new historical high of US$4,983 per pound, driven by a preliminary US-China agreement to suspend tariffs. This sparked global optimism that lifted Chile's Ipsa and boosted stocks of firms exposed to Argentina following Javier Milei's victory. US markets also rose, with Nasdaq gaining 1.86%.
Global markets closed higher on Monday, October 27, 2025, influenced by a preliminary US-China agreement to temporarily suspend tariffs, avoiding a 100% increase announced by Donald Trump. The deal, negotiated in Kuala Lumpur on the sidelines of the ASEAN summit, allows China to delay rare earth export restrictions for a year and resume US soybean purchases. Treasury Secretary Scott Bessent confirmed Beijing agreed to "delay them a year while reexamining" and resume "substantial agricultural purchases".
In the US, Nasdaq rose 1.86%, S&P 500 gained 1.22%, and Dow Jones 0.71%. MSCI World index up 1.11% and MSCI ACWI 1.13%. In Chile, Ipsa closed up 0.25% at 9,207.63 points, its highest since September 5, 2025 (9,210.68), nearing 9,300 intraday. It accumulates 3% in October and 38% in 2025. Jorge Tolosa of Vector Capital attributed the boost to the US-China deal, which "would avoid a 100% tariff", and Javier Milei's party victory in Argentine parliamentary elections on Sunday, benefiting stocks like Andina, CCU, and Cencosud.
Copper, Chile's top export, rose 1.67% to US$4,983 per pound on the London Metal Exchange, a new nominal record. Over three days it adds 3.7%, 6.67% in October, and 26.2% in 2025. On Comex, it advanced 1.5% to US$5.17, near July 2025's high (US$5.79). Emanoelle Santos of XTB Latam highlighted "renewed optimism" from the deal ahead of the Trump-Xi meeting in South Korea, plus supply disruptions like in Grasberg (Indonesia) and El Teniente (Codelco). Felipe Sepúlveda of Admirals added Fed rate cut expectations, projecting US$5.31 medium-term.
Chilean firms exposed to Argentina shone: Cencosud +7.41% (biggest gain since January 2022), CCU +5.33%, Andina B +4.89%. Milei's win confirms a US$20 billion swap from the US and opens another for the same amount. Macarena Gutiérrez of Credicorp Capital noted prior negative Argentina outlook hurt these stocks, but fundamentals matter. Guillermo Araya of Renta4 pointed to benefits from a stronger Argentine peso and lower country risk. The Chilean dollar fell $0.70 to $941.75, ranging $935.50-$942.50.