MercoPress. South Atlantic News Agency
Argentina and Brazil markets open Wednesday with steep losses
Argentina's Merval index as well as its peso led declines across the board on private purchases of U.S. dollars in the face of high inflation 
Sao Paulo-traded stocks which resumed trade after Carnival holidays for a shorter session, dropped 0.4% led by declines in the consumer and financial sectorsLatin American stocks hovered near 2019 lows on Wednesday led by steep losses in Argentina and Brazil which resumed trading after a two-day Carnival holiday, while currencies of oil exporters in the region fell as crude prices came under pressure. MSCI's index of Latin American stocks fell 1.3%, tracking losses across the region, barring Chile and Colombia which ended higher.
Argentina's Merval index as well as its peso led declines across the board on private purchases of U.S. dollars in the face of high inflation as markets resumed trading after the Carnival holidays.
Argentina is going through a crisis that originated in 2018 due to an abrupt depreciation of the peso, resulting in a prolonged recession and very high inflation.
Analysts ascertain that economic indicators and currency moves will be closely linked to the presidential elections scheduled in the second half of the year.
”Volatility (on the ARS=) is likely to remain high, especially as we enter the election season,” said Citi analysts in a note.
Sao Paulo-traded stocks which resumed trade after Carnival holidays for a shorter session, dropped 0.4% led by declines in the consumer and financial sectors with meat processor JBS being the biggest drag on the index.
Despite the sharp drop on the index, miner Vale rose over 2% after Brazil's mining minister called the firm vital to the country's economy despite a dam disaster that killed more than 300 people.
Peru's benchmark index closed lower hit by the decline in financial and consumer sector, despite the advance of some miners in the face of the rebound in copper prices.
Stocks in Chile and Colombia were the only gainers in the region, with the latter hitting a four-month high.
Most currencies in the region slid on the day, with Mexico and Colombia's pesos buckling under pressure from oil prices.
Brazil's real fell over 1.5% hurt both by oil price pressures and as investors adjusted positions after returning from the extended Carnival weekend.
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Read all comments@Enrique Massot
Mar 08th, 2019 - 05:07 pm +2Please do not try to shake the foundation+tradition on which many nations were built! The masses would just feel completely lost without living in misery & corruption! Afterall, they are making their best efforts to lead their lives as they are well-accustomed to!
why is THAT a “news”?
Mar 07th, 2019 - 11:50 am +1“Argentina is going through a crisis that originated in 2018...”
Mar 08th, 2019 - 04:34 pm -1Correction. Argentina's recession pairing up with high inflation originated Dec. 10, 2015 -- the day Mauricio Macri assumed the presidency. Inflation did exist before that date. However, the deep deterioration of all productive sectors, the fall in purchasing power and un unprecedented increase of foreign debt and capital flight belong to the current “business friendly” government.
The continued bad economic news in Argentina have now been a bit tempered by a scandal shaking the very foundations of the federal justice, as evidence coming out every day shows prosecutor Stornelli working with a false lawyer and a Clarin journalist to extort money from individuals under the threat of being involved in the “notebook corruption” affair and put in prison.
http://www.batimes.com.ar/news/argentina/prosecutor-delgado-dalessio-scandal-is-part-of-a-judiciary-in-crisis.phtml
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