A roundup of the region’s stock market results on Monday
🗽 On Wall Street:
U.S. stock markets failed to sustain the gains of the early hours of Monday’s session, after optimism took hold following the announcement that a new round of talks between Russian and Ukrainian officials broached the subject of a possible ceasefire.
Despite this, major U.S. indices closed with losses. The S&P 500 fell by 0.74%, while the Nasdaq Composite (CCMPDL) sank 2.04%, and the Dow Jones Industrials remained virtually unchanged.
“Financial markets continue to expect the U.S. economy to be in good shape, even as the economic impact of widespread price pressures continues,” said Edward Moya, an analyst at Oanda.
The International Monetary Fund said Monday it expects a deep recession in Ukraine and estimates the economy could plunge 35% this year because of the war.
🔑 Key Movements of the Day:
Oil prices continued to trade amid the volatility and closed with a drop as negotiations between Russia and Ukraine continue and lockdowns return to China amid the advance of Covid-19.
WTI retreated 6.76% to $101.94, while the Brent benchmark fell 5.98% to $105.93.
Negotiations between Russia and Ukraine are driving prices lower in the short term, as markets are “much more sensitive to sentiment than to actual supply and demand calculation”, Rebecca Babin, senior energy trader at CIBC Private Wealth Management, told Bloomberg.
Add to this the risks that demand for crude oil could face after China, the world’s largest oil importer, placed 17.5 million people in Shenzhen in confinement and banned travel by people in Jilin province after a spike in coronavirus cases.
📉 A Bad Day:
Argentina’s Merval (MERVAL) index suffered the worst performance among its Latin American peers, affected not only by the international performance, but also by the new soybean withholdings announced by the local government.
The National Ministry of Agriculture suspended the export registration of soybean meal and oil, in order to evaluate an increase in the percentage of withholdings applied to sales abroad, within a scenario of strong increases in the international prices of foods as a result of the war between Russia and Ukraine.
Following the news, Cresud (CRES) shares fell by 8.77%, while securities related to the energy sector also fell after the international plunge in commodity prices.
With this, the Merval had its worst day since November last year, in a session in which none of the main Latin American indices showed advances.
Brazil’s Ibovespa (IBOV) fell by 1.60% while Mexico’s S&P BMV/IPC (MEXBOL) fell by 0.93%.
🍝 For the Dinner Table Debate:
With 76 votes in favor and 41 against, Peru’s Congress approved the motion against President Pedro Castillo, who will also attend the Parliament on Tuesday, March 15, to deliver a message to the nation.
And on Thursday Congress is scheduled to hear the motion of destitution filed against the president filed by Renovación Popular party congress member Jorge Montoya, and which has been supported by other opposition parties such as Avanza País and Fuerza Popular.
This is the second motion against Castillo in less than eight months of government on the grounds of moral incapacity, but the first, in December, did not achieve enough votes to be admitted for debate.
