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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?
With most of the euro zone on holiday yesterday, traders around the world turned to the U.S. session for directional cues. U.S. stocks rallied on manufacturing data Tuesday morning and shrugged off the Chicago PMI and China’s disappointing PMI, only to finish well off the highs.
Markets today reacted to multiple pieces of positive news from China overnight. A higher than expected Purchasing Managers’ Index and lower than expected inflation reading both helped markets to move up.
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.
Argentina, the third largest economy in Latin America, reportedly added roughly 7 tons of gold to its holding in September last year, which brought its total reserves to 61.74 tons according to today’s International Monetary Fund report.
Recent economic data out of Mexico left me thinking that recent outperformance may be short-lived. I still think that Mexican equities will underperform other LatAm opportunities this year, notably Brazil and the Andean region, but I want to qualify the outlook with a discussion on risk.
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.
