Peru Market Soars on Humala Appointments

Peru’s market soared almost 2% midday Thursday on news of several market-friendly appointments to the cabinet of President-elect Ollanta Humala, before closing slightly below its opening level. The appointments include Luis Castilla as minister of finance, Carlos Herrera as minister of mining, Salomon Lerner as chief of staff, and Kurt Burneo as minister of production. Several of the appointments had been anticipated, and cheered as proof that Humala was taking a centrist stance. According to Nomura, news will continue to support a rally in Peruvian assets, while the ratings agencies could upgrade the sovereign within the first three months of the new administration. Peru is rated BBB minus/Baa3.