Chilean IPSA Reaches Historic High Amidst Global Risk Appetite and Geopolitical Shifts
Santiago, Chile – The IPSA, the benchmark stock index of the Santiago Stock Exchange, surged to a new historic high on Thursday, closing at 11,507.70 points. This significant increase was driven by a renewed appetite for risk in global markets, a sentiment shift largely attributed to recent developments in international relations.
The positive momentum followed an announcement by U.S. president Donald Trump at the world Economic Forum in Davos, where he indicated a retreat from his previously stated intention to pursue military action regarding Greenland. Furthermore, a preliminary agreement with NATO regarding the matter was reported, with Trump also signaling a decision to forgo the imposition of tariffs on European countries opposing his potential annexation of the Danish-controlled territory. This de-escalation of geopolitical tensions demonstrably boosted investor confidence.
Within the local market, several stocks experienced considerable gains. Mallplaza led the charge with a 6.50% increase,followed by Banco Santander at 5.54% and Banco de Chile with a 3.79% rise. latam Airlines, Banco de Chile, and SQM-B were the most actively traded stocks of the day.
Beyond the stock market’s performance, the Chilean Peso also strengthened, closing below 970 pesos to the US dollar, at 869.5. This advancement reflects a broader global weakening of the US dollar, as evidenced by a 0.41% decline in the DXY index,which measures the dollar’s performance against other currencies.
Initially facing losses,the price of copper rebounded to close at US$5.80 per pound on the Comex New York exchange, a 0.60% increase. This recovery in copper prices provided further support for the Chilean Peso, given the country’s significant reliance on copper exports.
The combined effect of these factors – a more stable geopolitical landscape, positive domestic market performance, and a strengthening currency – paints a promising picture for the Chilean economy as it moves forward into 2026. Investors will be closely watching for continued stability in global markets and further developments in international trade relations to assess the sustainability of this positive trend.