A roundup of Monday’s stock market results from across the region
🗽 On Wall Street:
Beyond the tensions caused by the war in Ukraine and the possibility of new sanctions against Russia, U.S. stock markets started the week with gains. Technology stocks, boosted by the performance of Twitter, added to the good performance of US indices.
The S&P 500 closed with an increase of 0.81%, while the Nasdaq Composite (CCMPDL) gained 1.90%, and the Dow Jones Industrial rose 0.30%.
Twitter (TWTR) shares soared 27% after news broke that the world’s richest man acquired a stake in the company. Elon Musk bought a 9.2% stake in the social network and became the platform’s largest shareholder.
The stake is worth about $2.89 billion, based on Friday’s closing market value, according to Bloomberg estimates. Until Friday, most of Musk’s net worth was tied up in Tesla (TSLA) stock and options, of which he is CEO. He owns about 17% of the electric-vehicle maker, whose value has also soared in recent years.
Tesla’s stock was also one of the big performers of the day after rising 5.61%.
🔑 The Day’s Key Events:
Oil prices rebounded, after closing last week with their biggest weekly decline in more than 10 years, following the release of strategic stockpiles by the United States and the International Energy Agency.
The market recovered from the setbacks on news that the European Union is weighing new sanctions against Russia, while French President Emmanuel Macron said the group will discuss possible sanctions on Russian oil and coal, and German Finance Minister Christian Lindner said all economic ties with Russia should be severed as soon as possible.
The statements came after images were released showing the killing of Ukrainian civilians in the town of Bucha.
In response, Germany and France each expelled more than 30 diplomats with alleged links to spy agencies.
U.S. President Joe Biden also reacted and said that Vladimir Putin could face trial for war crimes and promised that Washington would impose additional sanctions against Russia.
Prices also came under pressure after Saudi Arabia raised costs for customers in all regions. State-owned producer Saudi Aramco raised its Arab Light price to Asia by $4.40 per barrel from the previous month.
🥇 The Leader:
In Latin America, Argentina’s Merval (MERVAL) had the best performance during the day, closing with an increase of 0.90%, its fourth consecutive positive session.
Shares of YPF (YPFD), Cablevision Holding (CCVH) and Telecom Argentina (TTECO2) were among the best performers on the Argentine exchange.
Chilean President Gabriel Boric made his first international trip since taking office in March, to Argentina, where he met with his counterpart Alberto Fernández at the Casa Rosada.
“We want to tell Argentine businesses that in Chile the doors are open to invest, and I have no doubt that this will be reciprocated in Argentina”, Boric said. “In Argentina there are tremendous possibilities. We have to improve our relations”, he added.
📉 A Bad Day:
Despite the rise in oil prices, Colombia’s COLCAP was among the worst performers. Non-core consumer products, financials and energy sectors did not stand out during the day, and Terpel (TERPEL) shares and Grupo Bancolombia’s preferred shares saw the sharpest declines.
Mexico’s S&P BMV/IPC (MEXBOL) fell 0.52%, dragged down by the performance of the consumer staples, communication services and finance sectors.
Shares of Wal-Mart de México (WALMEX*), Qualitas Controladora (Q*) and Industrias Peñoles were among the worst performers of the day.
Brazil’s Ibovespa (IBOV) closed with a 0.24% decline.
Brazilian markets accelerated declines, with the Petrobras (PETR4, PETR3) situation weighing on stock market sentiment.
Economist Adriano Pires, chosen to be the new executive chairman of the state-owned oil company, has declined the job offer, two people familiar with the matter said, according to Bloomberg News. The government is still trying to convince Pires to accept the position, they added.
🍝 For the Dinner Table Debate:
Last year saw a boom in the use of cryptocurrencies and in 2022 that trend could accelerate, especially in countries that are experiencing sharp price hikes and depreciation of their currencies, according to a report released today by Gemini, a U.S.-based crypto exchange led by the Winklevoss brothers.
The report, which queried 29,293 adults in 20 countries around the world, including Brazil, Mexico and Colombia, found that in the economies assessed and whose currencies have experienced a depreciation of 50% or more against the U.S. dollar over the past decade, they are more likely to respond that they plan to buy crypto in the coming year.
According to the report, nearly half of those surveyed in Latin America and Africa said crypto assets can be a good way to hedge against inflation. In contrast, in countries that have not experienced large depreciations, people are less likely to think of them as assets to use for this purpose.
