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Spanish oil firm Repsol (REPYY, quote) has filed a lawsuit with the World Bank’s arbitration unit ICSID over their claim that Argentina’s nationalization of YPF (quote) was illegal. Does this mean it’s time to jump back into REPYY or YPF?
Even though American indices were up on this balmy Friday, markets around the world did not fare as well with European concerns trumping good numbers from emerging market telecom giant América Móvil on many exchanges.
Investors today reacted to a handful of earnings reports, mediocre unemployment data, and a better-than-expected Spanish bond auction. However, markets eventually soured on the prospect of calamity in Europe’s future. And the aftermath of Argentina’s decision to nationalize YPF continues to dominate global headlines.
Just because Argentina may have fools for political leaders, doesn’t necessarily mean it’s foolish to invest in the economy.
Spanish oil company Repsol (REPYY, quote) dropped 6% in trading in Europe Tuesday after the Argentinean government announced its intentions to nationalize YPF (quote). Up until Monday, Repsol owned 57.3% of the Argentinean company.
The internet has exploded with commentary on Argentina’s decision to re-nationalize hydrocarbon firm YPF. While the Western world was aghast at the government’s decision and worried about the future of foreign direct investment in the country, the Argentinian press and public welcomed the return of the formerly state-owned firm.
A quick look at what happened in overnight trading – the euro zone is showing strength with the S&P Europe 350 trading up 1.11% at the mid-day with leadership in the financial sector.
China’s move to liberalize trading in the RMB dominated headlines today. Elsewhere, concerns over the Argentinian government’s actions towards YPF weighed on equities with ties to Buenos Aires.
