Argentina's stocks are rocketing, outpacing equity market peers around the world in the second quarter as growing risk appetite has lured investors to the country's listed firms despite biting economic and debt crises. When translated to U.S. dollars using the official exchange rate, they are now up 64%, the most among the largest stock markets globally. Investors jumped in even as Argentina's government has scrambled to restructure around $65 billion in foreign debt and forecasts called for the economy, mired in recession since 2018, to contract as much as 10% this year.
BUENOS AIRES/MADRID (Reuters) - Argentina's likely next President, opposition front-runner Alberto Fernandez, laid out his populist credentials during a visit to Madrid on Thursday, saying local Argentine interests would trump those of creditors and energy investors. In comments that followed a speech at the Spanish parliament, he indicated he would, if elected, take a tougher stance on international access to Argentina's vast Vaca Muerta shale reserves, a magnet for investment. Fernandez, a moderate Peronist running alongside populist ex-leader Cristina Fernandez de Kirchner, added he was committed to meeting debt obligations as long as it did not harm Argentines.
Argentine markets held steady on Wednesday, even as thousands of protesters took to the streets to demonstrate against the government of President Mauricio Macri and a darkening economic outlook in the recession-hit South American country. The peso held its ground and bonds rose after newly imposed capital controls helped stabilize haywire markets that have plumbed record lows since Macri was trounced in a primary vote last month, dashing his hopes of re-election in October. On the streets of Buenos Aires, protesters brandished banners slamming Macri's economic austerity policies, rising poverty, and the International Monetary Fund (IMF), which agreed to a $57 billion credit facility with the country last year.