Argentina's stock market finally posted a solid rally on Tuesday after a week of sickening swoons. But ripples from the country's economic crisis will continue washing up on other regional economies even well after its presidential election in October. And a change of guards might not do much to restore confidence in a nation that has $3 billion in refinancing needs and an economy that is expected to contract for the next year and a half. Even as Argentine Economy Minister Roque Fernandez told local press that Monday's 8.7% plunge in the benchmark MerVal stock index "did not reflect the real economic situation, which is solid," traders in Brazil were biting their fingernails over the prospect of more trouble for a region already hammered by devaluations.
|Argentina's Swooning Stocks |
MerVal from June 1 through July 12