The Argentine stock market is affected by US tariffs

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Argentine sovereign stocks and bonds deepened their losses beaten by the US decision to impose new tariffs on steel and aluminum imports from Argentina and Brazil. The fall came only days after the inauguration of the new Government of Alberto Fernandez.

The Argentine stock exchange S&P Merval, the main index of the Stock Market of Buenos Aires, subtract 2.06% on provisional closure to be below 33,000 points. This closure comes after the announcement of US President Donald Trump to place tariffs on steel and aluminum, which caused the fall of the shares of steel companies in the country.

The Country Risk Indicator of Argentina, prepared by J.P. Morgan, exceeded 2,400 basis points at times, reaching one of the highest records of 2019.
The break occurs less than a week after the official inauguration, as head of state, of the elected president, Alberto Fernandez, and the elected vice president, Cristina Fernandez, scheduled for December 10.
A report from the Center for Studies of the New Economy (CENE) of the University of Belgrano (UB) warns that "the 80% increase in debt, verified during the Government of (the current President Mauricio) Macri, obliges the Administration of (President-elect) Alberto Fernandez to a restructuring, due to the shortage of reserves and a fiscal deficit that remains at 4% of GDP. "

Argentine stocks have shown average losses above 40% in dollars so far this year. The picture is even worse if you consider that they have already dropped 51% last year. Short-term sovereign securities accumulate a loss of 60% in dollars in 2019.



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https://mundo.sputniknews.com/economia/201912041089522318-la-bolsa-argentina-cae-afectada-por-los-aranceles-estadounidenses/

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