President Cristina Fernandez’s recent edict forcing Argentine banks to lend approximately $3.3 billion to businesses at below market rates by the end of the year has sent some bank shares significantly lower.
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.
Legendary investor Baron von Rothschild once stated that, “When the streets of Paris run with blood, I buy!” If he were alive today, he would probably be commenting about the streets of Buenos Aires, where the stock market is swimming with red ink amid threats of nationalization.
U.S. economic data have been giving markets a lift and the euro zone has been relatively quiet. Is it time to return to emerging markets? We laid out the issues every trader should watch in the new year on last week’s Trading the Globe.
Mark Mobius, executive chairman of the $45 billion Templeton Emerging Markets Group, is buying into Argentine stocks with attractive valuations.
Things we’re watching today: oil, the euro, Argentina and more.
The recent landslide victory for President Cristina Fernandez de Kirchner has emboldened the Peronist to step up a series of decrees over the last few weeks, setting investors on edge.
Federal Reserve Chairman Ben Bernanke has committed the United States to a low interest rate environment through at least 2013, which makes emerging market banks such as Banco Marco SA (BMA, quote) and BBVA Banco Frances SA (BFR, quote) more appealing than American money center banks such as Bank of America Corp. (BAC, quote) or Citigroup Inc. (C, quote). Exchange traded funds such as FTSE Argentine 20 (ARGT, quote) and Wisdom Tree Emerging Market Small Cap Fund (DGS, quote) hold these stocks.