Chile’s main stock index closed lower on July 1 as the dollar resumed its rise, after the IMACEC for May fell 0.9%.
The IPSA fell 0.25% to 10,812.21 points, ending a three-day winning streak. The dollar in Chile rose 2.20 pesos to close at 925.20 pesos per unit.
The Central Bank reported that the IMACEC contracted 0.9% in May, marking the fifth consecutive negative reading. Analysts at CLAPES UC and Coopeuch noted this raises the risk of a technical recession.
President José Antonio Kast stated that Chile faces a complex moment due to these figures and unemployment above 9%. Economy Minister Daniel Mas said the government inherited a stagnant economy since the second half of last year.
Wall Street also closed lower, with the S&P 500 down 0.22% and the NASDAQ down 0.66%. Copper fell 1.28% to 5.97 dollars per pound.
