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[InstaForex Gertrude]

COLOMBIA: Colcap Rises 0.15%, Boosted Again By Bancolombia Performance

Colcap, the main index of the Colombian Stock Exchange, rose 0.15% Wednesday, closing at 1,507.42 points, driven by oil prices abroad and Bancolombia's shares.

Felipe Espitia, an analyst at Alianza Valores, said Bancolombia's shares rallied after yesterday's profit-taking to resume the bullish trend they had been showing since the end of last week, boosted by the rebalancing in the FTSE index, in which it will take part from September 15.

Meanwhile, Colombian President Juan Manuel Santos said today that the recent increase in shares traded on the local stock exchange was a result of greater confidence in the country and support of investors for the good performance and prospects of the economy.

The shares of Avianca (+2.76%), Preferencial Bancolombia (+1.55%), Bancolombia (+1.24%), Cemex (+1.22%), Canacol (+1.11%), and Ecopetrol (+0.36%) rose, while ETB (-2.17%), Sura (-1.32%), and Cemargos (-0.94%).

The locally traded U.S. dollar closed at 2,913.70 Colombian pesos, marking a 0.69% fall, due to a rebound in oil prices abroad.

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[InstaForex Gertrude]

Wall Street Advanced as Trump Signals Support for Debt Limit

U.S. stocks climbed after two top Democratic leaders said President Donald Trump will support a debt ceiling extension and government funding plan. Energy shares were also higher as stocks rebounded from a day-earlier selloff.

The Dow Jones industrial average gained 0.25 percent to 21,807.64, as Home Depot and Chevron contributed the most gains. The S&P 500 rose 0.31 percent to 2,465.54, with energy and consumer discretionary among the best performers. The Nasdaq composite climbed 0.28 percent to 6,393.31, with some large-cap stocks, such as Netflix and Facebook, regaining ground.

The energy sector climbed 1.6 percent, for its largest single-day gain in two months, as oil prices increased. Oil majors Exxon Mobil and Chevron both gained two percent which buoyed the S&P 500 and the Dow.

Financials were up 0.2 percent following their biggest one-day decline since mid May. Nine of 11 major sectors closed in the green.

Vacation and timeshare stocks also dropped as investors focused on Category 5 Hurricane Irma. Shares of Hilton Grand Vacations fell 1.44 percent and Marriott also dropped nearly one percent.

United Continental Holdings and Newell Brands were among the worst performers in the S&P 500.

Airline company United trimmed its unit revenue and pre-tax margin guidance for this quarter, citing Hurricane Harvey. Newell Brands wrote in a statement that “nearly all” of its resin suppliers in Louisiana and Texas are shut down due to Hurricane Harvey.

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[InstaForex Gertrude]

Japan GDP Bumped Down To 0.6% In Q2

Japan's gross domestic product was knocked down to 0.6 percent on quarter in the second quarter of 2017, the Cabinet Office said in Friday's revised reading.

That missed forecasts for 0.7 percent and was down from the August 13 preliminary reading that suggested a gain of 1.0 percent. GDP was up 0.4 percent on quarter in the previous three months.

On a yearly basis, GDP was knocked down to 2.5 percent, again missing expectations for 2.9 percent and down sharply from the preliminary reading of 4.0 percent. GDP had advanced 1.5 percent in Q1.

Nominal GDP was revised down to 0.7 percent on quarter, missing forecasts for 0.9 percent and down from 1.1 percent in the preliminary reading. It fell 0.3 percent in the three months prior.

The GDP deflator was down 0.4 percent on year, unrevised and as expected. It was down 0.8 percent in the first quarter.

Private consumption was revised down to 0.8 percent, shy of forecasts for 0.9 percent, which would have been unchanged. It added 0.4 percent in the previous three months.

Business spending gained 0.5 percent on quarter, matching forecasts but down from 2.4 percent in the preliminary reading. It was up 2.4 percent in the first quarter.

The Japanese economy has now expanded in six straight quarters, the first such streak in more than three years.

Also on Friday: The Bank of Japan said that overall bank lending in Japan was up 3.2 percent on year in August, coming in at 515.802 trillion yen.

That was shy of expectations for 3.3 percent, which would have been unchanged from the July reading.

Excluding trusts, bank lending was also down 3.2 percent to 448.603 trillion yen. That missed forecasts for 3.4 percent, which would have been unchanged from the previous month.

Lending from trusts was up an annual 2.8 percent to 67.199 trillion yen - up from 2.7 percent a month earlier. .

The Ministry of Finance said that Japan had a current account surplus of 2,320.0 billion yen in July, up 19.6 percent on year.

The headline figure topped expectations for a surplus of 2,030.1 billion yen and was up from the 934.6 billion yen surplus in June.

The trade surplus came in at 566.6 billion yen, exceeding expectations for 518.0 billion yen and up from 518.5 billion yen in the previous month.

Imports were up 17.7 percent on year to 5,834.5 billion yen, while exports climbed an annual 15.2 percent to 6,401.2 billion yen.

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[InstaForex Gertrude]

Euro Strengthens Ahead of ECB Decision; Riksbank in Focus

The euro moved higher versus a group of currencies ahead of the European Central Bank meeting where policymakers might deliver a cautious tone regarding the currency's strength.

Few expect the ECB to announce a trim of its monthly asset purchases at the policy meeting, which is a significant reversal from recent months when several people expected such a move.

The euro rose 0.1 percent versus the dollar at $0.1928 in early trading.

The common currency has gained over 13 percent so far in 2017 and is also the world's top performer in major currencies.

Markets will also pay attention to the policy decision from the central bank of Sweden where policymakers are seen to keep interest rates unchanged.

The Swedish crown is the only major currency that has acquired gains versus the resurgent euro in 2017. Market watchers anticipate for the crown to extend gains given that the central bank signals a hawkish bias.

The krona climbed 0.1 percent versus the euro. The Swedish currency has marked three months in a row of gains until end of August, according to data from Thomson Reuters.

Against a broad trade-weighted basket of peers, the U.S. dollar fell 0.2 percent at 92.14.

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[IFX Yvonne]

Brexit Squeeze Set to Hit Worker Earnings

Reports from the Office for National Statistics are expected to show pay that continues to weigh on price growth in Britain. Last week, employees at the Bank of England reached an agreement while employees of a few McDonald's restaurants went on strike demanding higher pay.

According to a survey from Bloomberg, soft consumer spending growth is one of the main factors as to why the central bank will likely keep its benchmark rate at a record-low of 0.25 percent on Sep. 14. Although, the pound's weakening since the Brexit vote has been pulling up import costs, two policymakers are also seen to push for a rate hike in order to keep prices in check.

Survey data revealed that consumer-price inflation accelerated to 2.8 percent last month, which surpasses wages that are expected to have increased slightly over two percent in July, in a report to be released on Wednesday.

Quicker inflation is particularly distressing for public sector workers, laboring under a one percent cap on salary raises imposed as part of austerity measures since 2010. Nurses are among the lower paid with an average income of 23,500 pounds ($31,000) per year, according to the Royal College of Nursing.

Demands to end the public-sector pay cap is expected to be a key subject matter when the Trades Union Congress meets this week.

The BoE is facing a trade-off between supporting economic expansion with record-low interest rates and heading off inflation incited with higher borrowing costs.

 

[InstaForex Gertrude]

PERU: Mining Investment Rises 1.5%, Interrupting Three Years Of Decline

Peru's mining sector investments between January and July 2017 reached US$ 2.372 billion, a 1.5% growth compared to the same period of the previous year.

It was also the first increase since May 2014, according to the Peruvian Ministry of Energy and Mines.

Almost all mining investment items posted increases in the period: exploration (+25.2%), mining equipment (+25.1%), preparation (+23.6%), infrastructure (+22%), equipment (+12%) and investments in operation (+10.5%).

Mining exploration investments totaled US$ 237 million.

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[InstaForex Gertrude]

Gold Prices Edged Down as Risk Appetite Increases

Gold extended losses from the session earlier on Tuesday, as equities firmed while the dollar gained ground. Investor appetite for risk showed signs of growing.

Spot gold slipped 0.1 percent to $1,325.56 per ounce. In the session earlier, it dropped 1.4 percent in its largest one-day percentage loss since early July.

U.S. gold futures for December delivery fell 0.4 percent at $1,330.00 per ounce.

The dollar held on to large gains on Tuesday after a sharp rebound versus the yen and euro. Gold is sensitive to moves in the dollar. A stronger dollar makes gold more expensive for holders of foreign currency.

“Market players who were bracing for North Korea to conduct another missile launch over the weekend to mark their foundation day, were relieved when Pyongyang decided to host a celebration instead,” according to Lukman Otunuga, research analyst at FXTM. “This reprieve has rekindled appetite for riskier assets, and supported the greenback, while punishing safe havens such as gold.”

U.S. inflation expectations fell in August, with the year-ahead measure reaching its weakest level since early 2016, according to a Federal Reserve Bank of New York survey that contributes to the low price measures.

SPDR Gold Trust, the world's biggest gold-backed exchange-traded fund, said its holding increased by 0.14 percent to 835.68 tonnes on Monday from 834.50 tonnes on Friday.

Elsewhere on the Comex, silver futures lost 28 cents or about 1.58% to $17.84 per troy ounce.

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[InstaForex Gertrude]

ARGENTINA: Annual Inflation Rises To 22.8% In August, Says Central Bank

The annual inflation rate in Argentina increased to 22.8% in August, from 21.8% a month before, remaining above the 12% to 17% target range for this year, according to the country's central bank.

The annual inflation reading combine data from the new Argentinean inflation index, which has national coverage, and the previous benchmark index, which monitored prices only in Buenos Aires metropolitan area.

The new consumer price index showed that monthly inflation in Argentina was at 1.4% in August, from 1.7% in July. The former benchmark index revealed that in Buenos Aires metropolitan area monthly inflation fell from 1.7% to 1.5%.

Both readings, however, were below the 1.6% market expectation, according to a recent central bank survey.

Argentina's monthly inflation was primarily influenced by rising prices of health, housing, water, electricity, and fuels. Year-to-date, inflation in Argentina stands at 15.4%.

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[InstaForex Gertrude]

Wall Street Gains as Dow, S&P 500 and Nasdaq End at Records

U.S. equities advanced to all-time peaks on Tuesday as financials received a lift from rising yields. Wall Street also priced in comments from Treasury Secretary Steven Mnuchin on tax reform.

Investors paid attention to Washington after Treasury Secretary Mnuchin said he is “hopeful” that tax reform will be accomplished by year's end and that the administration is contemplating on backdating reform to Jan. 1.

The Dow Jones industrial average ended at 22,118.86, notching a record finish. Goldman Sachs contributed the most to advances, with DowDuPont being among the best-performing stocks in the index, finishing 2.5 percent higher.

The S&P 500 advanced 0.3 percent, hitting intraday and closing records. The index ended the session at 2,496.48. The Nasdaq composite rose 0.3 percent at 6,454.28, a record closing peak, after briefly declining.

Financials climbed over one percent, with six major lenders higher between 1.5 percent and 2.6 percent, after Goldman Sachs revealed a growth plan that could contribute almost $5 billion in revenue annually.

Shares of McDonald's dropped over three percent on a report that a research company had raised concerns regarding its third-quarter sales.

Apple held its annual consumer products event, where it unveiled three new iPhone models and an Apple watch. Its shares fell 0.4 percent, after fluctuating between gains and losses for most of the session. For the year, Apple soared around 40 percent.

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[InstaForex Gertrude]

VENEZUELA: ANC Dismisses European Call For Sanctions

Venezuela's National Constituent Assembly (ANC) rejected the European Parliament call for sanctions against the country and its condemnation to the election held on July 30 in the South American country.

"From this empowered and sovereign National Constituent Assembly, we reject all attempts to intervene in Venezuela. We repudiate all actions against our homeland aimed at its intervention," said the ANC chairwoman Delcy Rodr?guez during the session, according to the Venezuelan News Agency.

Earlier, the European Parliament stated that "does not recognize these elections nor the actions or decisions adopted by the recently constituted Assembly due to its lack of legitimacy."

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[InstaForex Gertrude]

European Stocks Flat as Miners Drop, Apple Suppliers Add Pressure

European markets finished relatively flat on Wednesday, as a mixed performance from overseas markets and a sharp drop in mining stocks added pressure on the region.

The pan-European Stoxx 600 closed 0.02 percent lower, while sectors pointed in different directions. The French CAC 40 and German DAX finished on a high, ending 0.17 and 0.23 percent respectively. A decline in London-listed miners weighed on the FTSE 100, which ended 0.28 percent lower.

Basic resources stocks led declines, as profit-taking hit metal prices. The sector dropped 1.75 percent after commodity traders claim an emergence of funds offloaded copper and had failed to carry into the market, according to a report from Reuters.

Anglo American, Antofagasta, BHP Billiton and Glencore all closed lower by two percent or more, on the back of a drop in copper and nickel prices.

Chipmakers supplying to Apple were among the worst performers, with AMS falling 3.9 percent, Dialog Semiconductor dropped 1.6 percent and STMicro rose 0.1 percent.

Traders said their shares were weighed down by Apple's new $999 iPhone X that will ship later than expected, on November 3. The price tag could also pull down demand for the device in markets like China.

Chipmakers have been the best performing among tech stocks this 2017, accounting for a large part of the sector's outperformance. Shares of AMS have gained 165 percent year-to-date.

Looking to media stocks, France's Vivendi, jumped towards the top of the benchmark after UBS upgraded its stock rating for the company to "buy" from "neutral". Vivendi shares rose 2.78 percent.

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[InstaForex Gertrude]

BRAZIL: Ibovespa Ends Down As Traders Turn Cautious And Vale Weighs

Ibovespa, the main stock index in Brazil, closed slightly down (-0.17%) at 74,656.67 points Thursday, after spending most of the day near stability. The index was affected by the losses of Vale's shares, which prevented it from ending in the black.

Meanwhile, investors were waiting for the new criminal complaint by the Attorney General's Office (PGR) against the President Michel Temer. Although already expected by the market, the new complaint may bring uncertainties and delays in the pension reform vote in Congress.

Vale's (VALE3 -3.16%) and steel and iron companies such as Gerdau Metal?rgica (GOAU4 -2.71%) tracked the drop of more than 3% in iron ore prices abroad amid lower demand from China.

The locally traded U.S. dollar fell 0.73%, to R$ 3,1160, after three consecutive trading sessions at high, influenced by the 0.41% increase in the Brazilian Central Bank's Economic Activity Index in July over June, higher than expected.

For analysts at Ita? BBA, the Ibovespa would remain bullish in the short-term, but some profit-taking movement is not ruled out after several highs in a row.

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[InstaForex Gertrude]

BoE Dilemma Intensifies as Squeeze on UK Wages Remains

Unemployment in Britain has reached a 42-year low, which intensifies the Bank of England's predicament. On Thursday, the BoE is set to meet where it must consider whether to hike interest rates despite stagnant wages as well as Brexit uncertainty.

In the three months to July, the jobless rate dropped to 4.3 percent, two-tenths of a percentage point below the central bank's estimate of the sustainable long-term level.

Combined with inflation rising to 2.9 percent last month, the data could indicate the need for higher interest rates to cool the economy and restrain the inflation's rise.

Average wages, both including and excluding bonuses, did not pick up from a stagnant annual pace of 2.1 percent, surprising expectations and implying that unemployment might go even lower before fueling wage pressures.

Prices in the overnight index swap market, which tracks official interest rates, implies that the BoE will hike rates back to 0.5 percent from the current low of 0.25 percent in February in 2018.

Wages in Britain remains £15 lower per week in cash terms and 3.2 percent lower after adjusting for inflation than before the crisis.

The BoE's dilemma is that low unemployment has yet to compel employers to increase wages, and prices will likely stop rising on their own once businesses have adjusted to the pound's post-Brexit tumble, which has hiked import costs.

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[InstaForex Gertrude]

Australia New Motor Vehicle Sales Unchanged In August

The total number of new motor vehicle sales in Australia was flat on a seasonally adjusted basis in August, the Australian Bureau of Statistics said on Monday - coming in at 99,564.

That follows the 2.0 percent decline in July.

Sales for sports utility vehicles added 0.8 percent on month, while sales for other vehicles gained 0.7 percent and passenger vehicles fell 0.4 percent.

By region, sales in the Northern Territory were up 0.9 percent on month, and down 0.6 percent in Tasmania.

On a yearly basis, sales climbed 1.7 percent after rising 1.8 percent in the previous month.

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[InstaForex Gertrude]

Northrop Grumman Nears Agreement to Procure Orbital - Source

Defense contractor Northrop Grumman Corp. is near a deal to purchase Orbital ATK Inc. for over $7.5 billion, according to a report from the Wall Street Journal, citing sources familiar with the transaction. An announcement could come as soon as Monday, as stated in the report.

Northrop Grumman declined to comment and Orbital did not immediately respond to a request for comment.

A merger could expand Northrop's portfolio of aerospace and defense electronics while supporting its expertise in composites and rocket propulsion as it goes up against Boeing Co. to replace the U.S.a ground-based nuclear defense system.

Northrop is valued at $46.5 billion, while Orbital is valued at $6.3 billion. The acquisition price could not be immediately specified, but could surpass $7.5 billion if a typical premium was attached to it, according to Wall Street Journal.

Orbital competes to lift payloads to space with SpaceX Exploration Technologies Corp.'s Falcon 9 and United Launch Alliance's Atlas family of rockets.

The potential transaction comes as growing tensions with North Korea have put more attention on defense systems.

Northrop Chief Executive Officer Wesley Bush told investors in its second-quarter earnings call in July that he was looking for acquisition opportunities to broaden the contractor's business. It would mark a change in direction for a company that has focused on shareholder returns through stock buybacks and dividends.

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[InstaForex Gertrude]

Wall Street Gains as Dow Hits 5th Consecutive Record Finish

U.S. stocks finished higher on Monday as investors looked ahead to a key Federal Reserve meeting. Equities extended a record-breaking run with gains being propelled by resurgent energy firms benefiting from an increase in oil prices.

The Dow Jones industrial average advanced 0.28 percent to 22,331.35 and marked its fifth consecutive record finish. Boeing and Caterpillar contributed the most to gains.

The S&P 500 also ended at an all-time peak of 2,503.87, climbing 0.1 percent, with financials leading gainers. The Nasdaq composite notched an intraday record before finishing 0.1 percent higher at 6,454.64. Nvidia's almost five percent gain pushed the S&P and the Nasdaq higher.

Seven of the 11 major S&P sectors were higher, driven by a 0.95 percent advance in the financial index.

The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, reached 9.88, its lowest level since Aug. 8. It traded 0.5 percent lower at 10.12.

Energy stocks have also been key to recent earnings growth, although the upbeat figures are coming off low comparisons after 2016's turmoil in the market, according to analysts.

Oil and gas firms ConocoPhillips and Hess, alongside refining company Valero Energy, were among the best performing energy stocks by end of trading.

Shares of major lenders, Bank of America, Goldman Sachs and JPMorgan, climbed over one percent, supported by increasing bond yields.

Orbital ATK notched a record peak after Northrop Grumman announced it will purchase the missile and rocket maker for almost $7.8 billion in cash. Shares of Northrop gained two percent.

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[InstaForex Gertrude]

Japan August Trade Surplus Y113.642 Billion

Japan posted a merchandise trade surplus of 113.642 billion yen in August, the Ministry of Finance said on Wednesday.

That beat forecasts for a surplus of 104.4 billion yen, although it was down from 418.8 billion yen in July.

Exports climbed 18.1 percent on year to 6.278 trillion yen, beating forecasts for a gain of 14.3 percent and up from 13.4 percent in the previous month.

Exports to Asia climbed 19.9 percent on year to 3.510 trillion yen, while exports to China alone advanced an annual 25.8 percent to 1.218 trillion yen.

Exports to the United States gained 21.8 percent on year to 1.183 trillion yen and exports to the European Union added an annual 13.7 percent to 671.783 billion yen.

Imports picked up an annual 15.2 percent to 6.164 trillion yen versus expectations for 11.6 percent and down from 16.3 a month earlier.

Imports from Asia jumped 15.2 percent on year to 2.995 trillion yen, while imports from China alone gained an annual 11.0 percent to 1.458 trillion yen.

Imports from the United States were up 5.7 percent to 648.748 billion yen, while imports from the European Union gained 12.3 percent to 756.342 billion yen.

The adjusted trade surplus was 367.3 billion yen, missing expectations for 404.7 billion yen and up from 363.1 billion yen in July.

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[InstaForex Gertrude]

Wall Street Climbs as Fed Meeting Begins

U.S. equities advanced on Tuesday as the Federal Reserve started its two-day monetary policy meeting. The three major indexes reported intraday highs on Monday.

The Dow Jones industrial average marked its 41st record close of the year, climbing 0.18 percent to 22,370.80. Verizon and Goldman Sachs contributed the most to the gains.

The S&P 500 added 0.1 percent to a record peak of 2,506.65, with telecommunications and financials leading gainers. The Nasdaq composite rose 0.1 percent and also reported a record close of 6,461.32.

The Fed is not expected to hike rates following its meeting. However, several market participants believe the central bank will announce the tapering of its $4.5 trillion portfolio.

The healthcare index was one of the biggest decliners amid losses in insurers like United Health, which dropped 1.9 percent as a result of recent efforts in Washington to overhaul Obamacare.

The largest U.S. telephone operators, Verizon and AT&T climbed over two percent, helping to lift the S&P. Wireless carrier T-Mobile advanced 5.3 percent while Sprint soared 8.1 percent, after a report that they were in active merger talks.

Tesla dropped 2.4 percent after Jefferies began coverage of the electric car maker's stock with “underperform”.

Best Buy tumbled 7.4 percent after the retailer forecast 2021 adjusted earnings well below Wall Street estimates. The stock was one of the largest laggards on the consumer discretionary index. Tags: Investments, Share, Stocks, bonds, Equity markets

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[IFX Yvonne]

Gold Falls to 3-Week Low, Weighed Down by Fed Outlook

Gold prices dropped to its weakest level in more than three weeks on Thursday as the stronger U.S. dollar and the increased chances of another Federal Reserve interest rate rise this year have reduced demand.

Spot gold fell 0.2 percent at $1,298.61 per ounce, after earlier falling to its lowest since late August at $1,295.65.

U.S. gold futures for December delivery shed one percent to $1,302.10 per ounce.

The precious metal initially moved higher in the minutes ahead of the Fed's statement, then reversed course and dropped. It briefly plunged below the $1,300 mark that traders had viewed as psychological support. Bullion reached $1,295.81 per ounce, the lowest since Aug. 28.

According to Bill O'Neill, co-founder of Logic Advisors, speculative investors had increased their net long position in gold for nine consecutive weeks, making the market vulnerable to more selling.

The dollar firmed as Asian shares fell marginally following the Fed's announcement to begin reducing its balance sheet and indicated one more rate rise in 2017.

U.S. allies recently said that enforcing international sanctions on North Korea, and not mere dialogue, was the key to getting Pyongyang to give up its nuclear weapons.

 

[InstaForex Gertrude]

VENEZUELA: Foreign Ministers Reaffirm Lima Declaration

The Foreign Ministers of Argentina, Brazil, Canada, Chile, Colombia, Costa Rica, Guatemala, Honduras, Mexico, Panama, Paraguay and Peru have reaffirmed the Lima Declaration, in which they pledge to joint efforts to solve the political crisis in Venezuela. The decision came at a meeting in New York last week.

In a statement released by the Mexican Foreign Ministry, the signatories regretted that Venezuela maintains "the breach of the democratic order, since its government violates constitutional norms, the will of the people and inter-American values, crackdown political dissent, hold prisoners and violates human rights and fundamental freedoms of individuals."

They also expressed "support and solidarity to the democratically elected National Assembly, as well as their commitment to enforce non-recognition of the acts of the National Constituent Assembly (ANC), and to continue the implementation of the Inter-American Democratic Charter to Venezuela."

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