More than 300,000 Argentines took to the streets of Buenos Aires recently to protest the administration of President Cristina Fernandez de Kirchner. It was the second major protest in two months against high levels of crime and inflation.
Asian equities followed euro zone and U.S. equities lower on disappointment at no action from the European Central Bank. Emerging markets titan China bucked the trend as the regulator reduced equity trading fees as part of the central bank’s commitment to stabilize economic growth. The move helped renew speculation China’s central bank will step in and provide stimulus soon.
Strong talk by ECB President Mario Draghi and a better than expected 2nd quarter GDP report in the United States pushed developed and emerging markets up strongly last week.
A recent leading economic indicator, published by Torcuato Di Tella University, put odds of a recession in the Argentine economy at 95% for a second consecutive month. Over the last 18 years, the indicator has forecasted recessions 4.3 months in advance and growth periods 2.7 months in advance.
The wait may be over for a formalization of the 130-billion-euro aid package for Greece to avoid a default in March. Bloomberg reports on Saturday that the Greek government has found the additional cuts to bring spending down to $427 million, a requirement led by Germany as part of further aid.
The battle for control of one of Brazil’s biggest steel makers is heating up as Japanese interests are reportedly mulling the purchase of $2.9 billion worth of Usiminas stock.
Global miners that call Peru home or at least earn a significant chunk of their earnings there have taken a huge hit after the election.
Argentina is a great market for U.S. retail investors, with over a dozen fairly liquid ADRs with direct or indirect exposure. You can play this resurgent Latin powerhouse.