Stocks and currencies of Latin American countries fell this week as rising concerns of a possible Brexit caused general risk aversion in the financial markets. The markets had seen a small rise on Wednesday after the two-day US Federal Reserve policy meeting ended with uncertainty over when US interest rates would start rising again.

But the rises were short lived, returning to their general downwards trend for the week before a brief rally towards the end of the week. The Brexit debate continues to overshadow other news and recent polling data favouring the ‘Leave’ campaign generates fear of volatility increasing causing investors to turn towards safe-haven assets.

Campaigning was suspended on both sides on Friday in reaction to the murder of Labour MP Jo Cox and first indications suggested that the killing of the vocal ‘Remain’ campaign and pro-immigration cause has led to a change in the general attitude to reconsider the arguments of the ‘Remain’ campaign.

This has been reflected in the markets on Friday as new confidence in the Remain campaign increased investors willingness to take risks and led European stock markets and currencies to experience a general upturn. This development may well reflect positively on Latin American markets in the coming week.