^MERV - MERVAL

Buenos Aires - Buenos Aires Delayed Price. Currency in USD
27,977.74
+747.12 (+2.74%)
At close: 5:26PM ART
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Previous Close27,230.62
Open27,230.62
Volume0
Day's Range27,230.62 - 28,053.94
52 Week Range24,618.09 - 44,470.76
Avg. Volume0
  • Reuters

    GLOBAL MARKETS-Safe havens rise as recession concerns trigger easing bets

    Investors on Tuesday sought traditional safe havens, including the Japanese yen and U.S. Treasuries, even as there were signs that more economic stimulus was on its way, as markets focused on concerns over a global deceleration. The prospect of new elections in Italy after the resignation of Prime Minister Giuseppe Conte added to global uncertainties, but Italian markets had been jittery over infighting within the coalition and Italian sovereign bond yields fell after the announcement. U.S. President Donald Trump said his administration was looking to cut some taxes but that he was not talking about doing anything imminently.

  • Argentina Faces Fresh Turmoil From Resignation, Debt Downgrades
    Bloomberg

    Argentina Faces Fresh Turmoil From Resignation, Debt Downgrades

    (Bloomberg) -- Life just got a whole lot tougher for Argentina’s Mauricio Macri a week after his shock primary-election defeat sent markets into a tailspin.The embattled president is suddenly grappling with the resignation of his economy minister and a double downgrade to the nation’s debt. Meanwhile, his opponent Alberto Fernandez, now favorite to win the presidency on Oct. 27, is calling on Macri to renegotiate the terms of a record $56 billion credit line with the International Monetary Fund.The slew of negative headlines may unleash a fresh bout of market turmoil after a brief respite at the end of last week. Argentina’s global bonds will be the first to react, while the nation’s currency and stock markets remain closed on Monday due to a local holiday.“This will inject more uncertainty,” said Nader Naeimi, the head of dynamic markets at AMP Capital Investors Ltd. in Sydney. “It puts a huge question mark over the creditworthiness of the country and is likely to further pressure the peso and Argentine bonds. We are staying out.”Economy Minister Nicolas Dujovne, who led bailout negotiations between Argentina and the IMF last year, stepped down on Saturday, saying in a letter to Macri that the country needs “significant renewal in the economic area.” Hernan Lacunza, economic minister for the province of Buenos Aires, will replace him.Dujovne’s resignation came a day after Argentina’s credit profile was cut deeper into junk territory by Fitch Ratings and S&P Global Ratings. Both cited the possibility of a sovereign debt default.IMF and DefaultThe IMF bailout had been instrumental in Macri’s strategy to stabilize the peso and ensure the country’s solvency. Yet, in an interview with La Nacion published Sunday, Fernandez said the deal needs to be reviewed because Argentina isn’t meeting the targets it agreed upon. He added that it’s “impossible” to repay the IMF on time, and that the only solution is to reschedule payments, according to the newspaper.In a separate interview with Clarin, Fernandez had a mixed message about the possibility of default. While saying the sensible thing is for Argentina to keep paying its obligations, he added that the country already finds itself in default conditions, as signaled by bond prices.Argentines Reflect on Last Week’s Election Results, Market ShockThe implied chance that Argentina will miss a debt payment, as measured by credit default swaps, soared last week. The Merval stock index lost 45% in dollar terms in the five days through Friday, bond prices tumbled about 30% and the peso weakened 18%.“While Argentina has been trading at distressed price levels already, we expect further downside on this news as it highlights an increased likelihood of a credit event,” Citigroup Inc. strategists including Dirk Willer wrote in a report.(Updates with Fernandez comments from seventh paragraph.)\--With assistance from Dana El Baltaji, Abeer Abu Omar and Jorgelina do Rosario.To contact the reporters on this story: Justin Carrigan in Dubai at jcarrigan@bloomberg.net;Walter Brandimarte in Brasilia at wbrandimarte@bloomberg.netTo contact the editors responsible for this story: Justin Carrigan at jcarrigan@bloomberg.net, Dana El Baltaji, Ros KrasnyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Financial Times

    Argentine assets still look vulnerable to another selling frenzy

    The day after Mr Fernández handed Mr Macri a decisive defeat in the primary elections, the peso lost more than a fifth of its value against the dollar at one point. Yields on the country’s government bonds also spiked, indicating a fall in price.

  • Reuters

    UPDATE 4-Argentina central bank faces peso test ahead of October election

    Argentina's central bank must toe a politically fraught line between supporting the peso without blasting through the bank's reserves, as policymakers seek to salvage the currency ahead of October's presidential election, analysts said on Friday. The peso was in free-fall for most of this week after a shock primary election result on Sunday, when center-left presidential candidate Alberto Fernandez trounced center-right President Mauricio Macri. The scale of Fernandez's victory suggested he could win the upcoming ballot in the first round, but potentially be left as leader of a country that has very few foreign reserves left, raising the chances of a debt default.

  • Reuters

    EMERGING MARKETS-Argentine peso jumps after heavy losses, Mexico central bank cuts rates

    The Argentine peso closed at 57.4 pesos per dollar on signs that the country's president and his main opposition rival were determined to control an economic crisis sparked by a shock primary-election result that wiped out around a quarter of the peso's value. Opposition presidential candidate Alberto Fernandez trounced center-right President Mauricio Macri in Sunday's vote, which raised fears of a return to protectionist policies if Fernandez were to win the October general elections. Win Thin, global head of emerging market currency strategy at Brown Brothers Harriman (BBH) pinned the strength in the peso to selling of dollar by some bank's after the central bank established a ceiling for foreign exchange holdings equivalent to 5% of a bank's net worth which is set to take effect on August 20.

  • Argentina's Macri shelves sales taxes as he seeks to cut left's lead
    Reuters

    Argentina's Macri shelves sales taxes as he seeks to cut left's lead

    Argentine President Mauricio Macri, smarting from a bruising primary election loss, announced on Thursday an end to sales taxes on basic food products until the end of the year in a bid to salvage his re-election prospects and end an economic crisis. In a televised address to the nation, Macri announced that sales taxes of around 21 percent would be axed on basic foodstuffs - including bread, sugar, milk, oil, flour, pasta, eggs and rice - to soften the impact of an IMF-backed austerity program on the growing ranks of the poor. The tax cut represents the boldest of a series of measures Macri has unveiled since his overwhelming defeat on Sunday by the leftist opposition, as he seeks to bolster his waning support and revive Latin America's third-largest economy.

  • EMERGING MARKETS-Recession fears plague Latam markets, Argentina peso slides further
    Reuters

    EMERGING MARKETS-Recession fears plague Latam markets, Argentina peso slides further

    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.

  • Reuters

    EMERGING MARKETS-Latam markets struggle as recession fears grow; Argentine peso down again

    Emerging markets have been swayed this week by a plunge in Argentina's peso currency to a record low, news that U.S. tariffs on certain Chinese goods will be delayed and an inversion of the U.S. Treasury bond yield curve for the first time since 2007, a classic recession signal. There were few signs of the Argentine peso stabilizing as President Mauricio Macri announced measures including income tax cuts for workers and increased subsidies for social services after his shockingly poor showing in Sunday's presidential primaries. The currency has shed more than 20% since Sunday when the center-right leader finished far behind his chief Peronist challenger, Alberto Fernandez, in primary elections, bringing worries of populist policies for financial markets.

  • Reuters

    UPDATE 8-As election looms, Argentina's Macri announces relief measures after years of spending cuts

    Argentine President Mauricio Macri on Wednesday unveiled a package of welfare subsidies and tax cuts for lower-income workers to lessen the pain of an economic crisis months before elections, but his announcement failed to halt the peso currency's collapse. Macri's announcement, which marked a major climbdown in his IMF-backed efforts to balance Argentina's budget, came after his leftist rival Alberto Fernandez romped to a landslide victory in Sunday's primary election by drawing on popular anger at painful austerity measures. In the wake of Sunday's poll, Macri had promised measures to turn around his 15 point defeat, which sent Argentina's currency, stock market and bonds into a tailspin amid fears of a return to capital controls and a debt restructuring.

  • EMERGING MARKETS-Argentina's peso extends slide, stocks rebound on China relief
    Reuters

    EMERGING MARKETS-Argentina's peso extends slide, stocks rebound on China relief

    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.

  • Reuters

    GLOBAL MARKETS-Asia shares jolted by Hong Kong unrest, Argentine peso crash

    Asian shares slumped on Tuesday as fears about a drawn out Sino-U.S. trade war, protests in Hong Kong and a crash in Argentina's peso currency drove investors to safe harbours like bonds, gold, and the yen. MSCI's broadest index of Asia-Pacific shares outside Japan skidded 1%. Chinese stocks fell 1%, while Hong Kong's main market index tumbled 1.7% to a seven-month low.

  • Financial Times

    Argentina’s political rivals must face up to urgent economic realities

    Argentina went to the polls on Sunday to choose the candidates in the presidential election to be held on October 27. Mr Fernandez won the primary by a large margin (47 per cent to 32 per cent), enough to secure the presidency in October (45 per cent is the threshold to avoid a run-off). Government dollar bonds lost about 25 per cent on average, with yields rising to about 35 per cent on short-term notes, while credit default swaps showed an implied default probability of 75 per cent.

  • Financial Times

    Argentina sell-off stuns emerging-market veterans

    Argentina’s stock market is, not for the first time, in the headlines for all the wrong reasons. Opposition candidate Alberto Fernández comprehensively beat market-friendly President Mauricio Macri in primary elections at the weekend. The result drove fears among investors that former president Cristina Fernández de Kirchner, Mr Fernández’s running mate and longstanding market bogeywoman, could return to power in October’s election.

  • Global Markets: Shares, dollar rebound on thaw in U.S.-China trade war
    Reuters

    Global Markets: Shares, dollar rebound on thaw in U.S.-China trade war

    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.

  • Shares, dollar rebound on thaw in U.S.-China trade war
    Reuters

    Shares, dollar rebound on thaw in U.S.-China trade war

    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.

  • GLOBAL MARKETS-Yen, gold gain on trade war angst; Argentine peso sinks
    Reuters

    GLOBAL MARKETS-Yen, gold gain on trade war angst; Argentine peso sinks

    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.

  • Reuters

    EMERGING MARKETS-Argentina markets crash as Macri's re-election chances drop

    The country's main stocks index posted its worst day ever with all its components well in the red, while the cost of insuring exposure to Argentina's sovereign debt surged almost 1,000 basis points. Stumping expectations, opposition candidate Alberto Fernandez - whose running mate is former President Cristina Fernandez de Kirchner - dominated the primary on Sunday, significantly lessening Macri's chances of being re-elected in October. "What is unclear is exactly how Fernandez and Kirchner intend to conduct economic policy if they come to power," said Alejo Czerwonko emerging markets strategist at UBS Global Wealth Management's chief investment office.

  • Financial Times

    Argentina: Macri de coeur

    Argentina’s president Mauricio Macri was always going to face an uphill battle to secure a second mandate. In response, an already weak currency plunged another 23 per cent to a new low of 60 per dollar while the Merval stock market dived 11 per cent. Prices for the country’s debts also collapsed, sending yields on both the 10-year euro-denominated note due 2028 and the century bond to record highs.

  • Macri’s Shock Setback in Argentina Deals Blow to Re-Election Bid
    Bloomberg

    Macri’s Shock Setback in Argentina Deals Blow to Re-Election Bid

    (Bloomberg) -- Argentina’s President Mauricio Macri unexpectedly lost a primary vote by a landslide, foreshadowing a defeat in October’s presidential election and a possible return to the policies of his predecessor, Cristina Kirchner.Argentina’s international bonds and stocks tumbled in London and New York early trading after the vote, effectively a test of national sentiment before the two-round presidential ballot. The scale of Macri’s defeat took pollsters by surprise, yet it reflects widespread public dismay at the country’s direction amid recession, austerity and inflation running at more than 50%.With some 99% of ballots counted, Alberto Fernandez, the main opposition candidate who has Kirchner as his running mate, took almost 48% of the vote to 32% for Macri. If that result were to be replicated in October, Fernandez would take the presidency without the need for a runoff.The nation’s century bond due in 2117 collapsed, sending the yield up more than two percentage points to 11.9%, the highest since the notes were sold two years ago, according to data compiled by Bloomberg. Dollar bonds due in 2028 also plunged more than 18% in New York, while American depositary receipts from Argentine companies sank in early trading.“This election is over,” said Lucas Romero, director of polling firm Synopsis. “There’s no way the government can overcome this.” Pollsters have long forecast that Macri would have trouble overcoming defeat by a margin of more than 7 percentage points.The primaries were originally intended to whittle down candidates within each party ahead of the elections proper on Oct. 27. But because the parties each fielded a single ticket, the ballot ended up working as a broad measure of voter sentiment.Macri conceded defeat on Sunday even before the release of official numbers, which were delayed by the slow counting of votes in the province of Buenos Aires. “We had a bad election,” he told a crowd of somber supporters in Argentina’s capital. “We’ll have to redouble our efforts.”In an emergency meeting of his cabinet and other close aides late on Sunday, Macri ruled out any changes to the presidential team, La Nacion newspaper reported.Investors now face the reality that voters are losing patience with the market-friendly policies adopted by Macri, and are prepared to take a gamble on a return of the type of interventionist measures that were common place under Kirchner. The former president nationalized pension funds, imposed currency controls and tampered with economic statistics during her time in office from 2007 to 2015.Macri succeeded her with pledges to boost the economy and return Argentina to the international fold, but was instead forced to seek a record $56 billion bailout from the International Monetary Fund and raise interest rates to more than 70% following a currency crisis last year. While the economy started to show signs of slowly recovering from recession earlier this year, what progress there has been failed to convince voters to back Macri on Sunday.Fernandez, 60, who has yet to lay out detailed economic policies, made a point of trying to allay investor fears in a speech after the release of official results.“We were never crazy while in power,” he told supporters in Buenos Aires. “We always fix problems left by others.”Currency WoesMonday’s sell-off was exacerbated by the last-minute wave of optimism about Macri’s prospects that caused the Merval stock index to jump 6.7% on Friday.Doubts about the future of the IMF deal under Fernandez may fuel a currency rout that is likely to put the central bank in a challenging situation. The bank has so far managed to stabilize the peso with a ultra-tight monetary policy and interventions in the peso futures market with the blessing of the IMF. The Argentine currency will start trading around 9 a.m. New York. To win outright on Oct. 27, the top candidate must receive 45% of valid votes, or 40% of them with a 10 point difference from the second-placed contender. If neither scenario happens, there’s a runoff vote on Nov. 24.Polls for weeks have shown Macri and Fernandez heading toward a runoff.“It’s one in another line of elections globally where the pollsters had absolutely no clue,” said Walter Stoeppelwerth, chief investment officer at Portfolio Personal Inversiones, a broker in Buenos Aires. “Everybody I talk to is in shock.”(Updates with market reaction from second paragraph)\--With assistance from Rodrigo Orihuela, Raymond Colitt, Hannah Benjamin, Tasos Vossos and Jonathan Gilbert.To contact the reporters on this story: Patrick Gillespie in Buenos Aires at pgillespie29@bloomberg.net;Jorgelina do Rosario in Buenos Aires at jdorosario@bloomberg.net;Carolina Millan in Buenos Aires at cmillanronch@bloomberg.netTo contact the editors responsible for this story: Juan Pablo Spinetto at jspinetto@bloomberg.net, Walter Brandimarte, Alan CrawfordFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Reuters

    EMERGING MARKETS-Latam markets join global sell-off as yuan slide spooks investors

    * Latin American stocks at two-month lows * CLP falls to 3-yr low on lower copper prices * Peru central bank meeting later this week Aug 5 (Reuters) - Latin American assets tumbled on Monday as escalation of U.S.-China trade tensions pushed investors to pile on to safe-heavens like government bonds and gold, while the yuan fell to its lowest levels in over a decade. The MSCI index of Latin American currencies fell over 1%, adding to a 2.3% slide through last week, its worst in 2019, after U.S. President Donald Trump announced a 10% tariff hike on the remaining $300 billion worth of Chinese imports. Chile's peso which tracks copper prices fell to an over three-year low as the yuan's slide made it expensive for the world's biggest copper consumer, China to buy dollar-denominated metals.

  • Reuters

    EMERGING MARKETS-Strong dollar knocks Latam FX lower after Fed

    In a statement at the end of its two-day policy meeting, the Fed said it had decided to cut rates by 25 basis points "in light of the implications of global developments for the economic outlook as well as muted inflation pressures." However, Powell's comments that Wednesday's rate cut was different from the start of a lengthy series of rate cuts quashed expectations the U.S. central bank will embark on an easing cycle. Latin American currencies declined, in-line with their emerging market peers.

  • Reuters

    EMERGING MARKETS-Trade optimism lifts Latam assets; Brazil markets cheer stimulus

    White House economic adviser Larry Kudlow said on Tuesday it was a good sign that top U.S. officials would travel to China to discuss reviving stalled trade talks. The latest impact of the protracted trade war was reflected in the weak manufacturing PMI data from Eurozone, Japan and U.S. earlier in the day but increased the bets for the European Central Bank to cut interest rates on Thursday. MSCI's index of Latin American stocks and currencies rose with Brazilian assets leading gains as the government's latest move to cut worker protections and boost job creation lifted sentiment.