|Day's Range||38,156.95 - 39,015.46|
|52 Week Range||21,738.62 - 48,988.82|
Argentina's stocks are rocketing, outpacing equity market peers around the world in the second quarter as growing risk appetite has lured investors to the country's listed firms despite biting economic and debt crises. When translated to U.S. dollars using the official exchange rate, they are now up 64%, the most among the largest stock markets globally. Investors jumped in even as Argentina's government has scrambled to restructure around $65 billion in foreign debt and forecasts called for the economy, mired in recession since 2018, to contract as much as 10% this year.
Adding to overall optimism, the U.S. Trade Representative's office said U.S. and Chinese trade officials were "close to finalizing" some parts of an agreement.
MSCI's index of Latin American stocks rose 1.3%, holding near a one-month high, mirroring gains across global stock markets.
Argentine markets held steady on Wednesday, even as thousands of protesters took to the streets to demonstrate against the government of President Mauricio Macri and a darkening economic outlook in the recession-hit South American country. The peso held its ground and bonds rose after newly imposed capital controls helped stabilize haywire markets that have plumbed record lows since Macri was trounced in a primary vote last month, dashing his hopes of re-election in October. On the streets of Buenos Aires, protesters brandished banners slamming Macri's economic austerity policies, rising poverty, and the International Monetary Fund (IMF), which agreed to a $57 billion credit facility with the country last year.
After a day of relief on news that Washington would delay 10% tariffs on some Chinese goods, currencies in Brazil, Mexico, Colombia all fell well more that 1%, while Chile's peso slipped a percent. Regional stocks also slid, with Mexico's main index sinking to its lowest in more than 5 years, while Brazil's main index tumbled 3% and was on track for its worst day in 4-1/2 months. At the bottom of Brazil's main index were shares of education company Kroton SA down nearly 10% after weaker-than-expected quarterly results, followed by planemaker Embraer which reaffirmed it would report a loss for 2019.
The currency had fallen 30% to record low of 61.995 per dollar in the previous session, sending shockwaves across global financial markets. Opposition candidate Alberto Fernandez, who has former President Cristina Fernandez as his running mate, pulled off a stunning upset in the primary with a wider-than-expected 15-point lead over incumbent president Macri. Data provider IHS Markit showed five-year credit default swaps (CDS) marked at 2,116 basis points, up from what was already a five-year high the previous day.
U.S. and European stocks jumped, the dollar strengthened and Treasury yields rose on Tuesday after the United States said it would delay tariffs on some Chinese products, easing concerns that a protracted trade war would harm global growth. President Donald Trump backed off his plan to impose 10% tariffs on Sept. 1 on remaining Chinese imports, delaying duties on cellphones, laptops and many other consumer goods in the hopes of blunting their impact on U.S. holiday sales. Equity, debt and currency markets sharply reversed course minutes after Wall Street opened for trade on news from Hong Kong about a call Chinese Vice Premier Liu He held with U.S. officials, according to China's Commerce Ministry.
Investors piled into gold, safe-haven yen and bonds on Monday over nagging concerns about a prolonged U.S.-China trade war and global growth, while Argentina's peso plunged 15% after voters handed its president an election mauling. Concerns that a trade deal would not be reached before the 2020 U.S. presidential election grew after Goldman Sachs on Sunday became the latest to cut its U.S. growth outlook and warn a trade stand-off would fester past the election. Stocks in the near term lack a catalyst either from company earnings, the Federal Reserve or a trade deal, said Rahul Shah, chief executive of Ideal Asset Management in New York.
Argentine President Mauricio Macri vowed on Monday to win a second term despite a surprisingly strong performance by the opposition in the primary election that set off a shockwave through markets, crashing the peso currency and sending stocks and bonds tumbling. Macri said he would "reverse" the result of Sunday's primary, but acknowledged that a weaker peso triggered by the surge in support for Peronist opposition candidate Alberto Fernandez and his running mate former President Cristina Fernandez would fuel inflation. The peso closed 15% weaker at 53.5 per U.S. dollar after plunging some 30% to a record low earlier in the day after the primary election prompted market fears over Argentina's potential return to the interventionist economics of the previous government.