Argentina’s Merval Index Tumbles; NYSE Starts Year With Losses

In Latin America, only the Peruvian and Mexican markets closed with gains, while Tesla and Apple shares dragged down the NYSE on Tuesday, the market’s first trading day of 2023

Photographer: Michael Nagle/Bloomberg
By Bloomberg Línea
January 03, 2023 | 11:00 PM

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A roundup of Tuesday’s stock market results from across the Americas

👑 Peru leads in Latin America:

Most of Latin American stock exchanges closed in the red on Tuesday but Peru’s S&P/BVL (SPBLPGPT) and Mexico’s S&P/BMV IPC (MEXBOL) closed the day with gains.

The Peruvian stock market gained 0.50%, boosted by the good performance of the financial sector. The performance of the shares of Volcan Compañía Minera (VOLCABC1), Credicorp LTD (BAP) and Cementos Pacasmayo (CPACASC1)

The Mexican index closed with a 0.12% gain due to the good performance of the materials and communication services sectors. The shares of Industrias Penoles (PE&OLES*), Operadora de Sites Mexicanos (SITES1) and Arca Continental (AC*) were among those that led the day’s gains.


📉 A bad day for Argentina’s Merval:

Argentina’s Merval (MERVAL) was the region’s index that fell the most on Tuesday. The Argentine stock market closed with a loss of 4.20%, ending a long streak of gains.

The performance of shares of YPF S.A (YPFD), Banco BBVA de Argentina (BBAR) and Cablevision Holding S.A. (CVH) led the gains.

“Although Argentina continues to be an opportunity for long-term investors who consider these prices as attractive considering its track record, technical analysis forewarned us of this short-term decline in stocks,” wrote Ayelen Romero, account executive at Rava Bursátil.


Brazil’s Ibovespa (IBOV) also fell, closing 2.08% lower on a day of risk aversion in the domestic market, influenced by the political scenario, in addition to the setback of the US indexes.

Comments by President Luiz Inácio Lula da Silva and from the new director of Petrobras (PETR3;PETR4), Jean Paul Prates, weighed on the sentiment of investors in the stock market.

According to the first comments from Brazil’s president and his economic team, Petróleo Brasileiro SA will protect consumers from sharp swings in fuel prices and increase investments in refining projects to curb fuel imports.

Among Lula’s first executive decisions is the extension of the fuel tax moratorium, reversing his finance minister’s decision to let tax exemptions expire. Petrobras’ new president, Jean Paul Prates, said that the tax exemption will give Petrobras enough time to review its own pricing policy.


🗽On Wall Street:

US stocks declined on Tuesday as Tesla Inc. (TSLA) and Apple Inc. (AAPL) highlighted slowing demand, stoking concern about what lies ahead for growth stocks and the US economy as the Federal Reserve prepares to keep raising interest rates.

Treasuries advanced and the dollar climbed the most in nearly three weeks.

The S&P 500 and the Nasdaq 100 ended the first trading session of 2023 in the red, but came off session lows as the closing bell rang. Apple’s decline, as concerns about iPhone supply mount, pushed the firm’s market value below $2 trillion. The firm has told suppliers to make fewer components for some of its products because of withering demand. Tesla fell the most since 2020 after it delivered fewer vehicles than expected last quarter.


The S&P 500 and the Nasdaq Composite (CCMPDL) dropped 0.40% and 0.76%, while the Dow Jones Industrial Average slipped 0.03%.

Treasury yields declined across the curve. Oil fell the most since November as mild winter temperatures in several parts of the world assuaged fears of an energy crisis.

Investors, still on the edge after their wagers about the Fed’s path missed the mark in 2022, expect a volatile year of trading as uncertainty about the US economy persists. Fed policy will dictate how stocks and bonds perform this year, with some traders already seeking opportunities resulting from risk assets getting sold off.

🔑 The day’s key events:

Oil prices fell on Tuesday amid above-average winter temperatures in the United States and Europe, easing fears of an energy crisis that could lead to power outages. The dollar’s biggest rise in nearly three weeks also made commodities priced in that currency more expensive.


West Texas Intermediate (WTI) fell by 4.15% to settle at $76.93 a barrel in New York for February settlement, the biggest drop since mid-November, while Brent crude oil fell by 4.02% to settle at $82.46 a barrel for March.

In this new year, investors are awaiting Russia’s reaction to the energy sanctions and the repercussions in China of the end of its Covid Zero plan. There are also expectations about the possible decision by the Organization of Petroleum Exporting Countries (OPEC) and its allies to cut supply again.

Despite crude oil’s losses today, there are signs that investors are more optimistic about the direction of the market as China reopens its economy.


🍝For the dinner table debate:

FTX co-founder Sam Bankman-Fried pleaded not guilty to fraud charges filed against him Tuesday and will star in October in one of the largest white-collar fraud trials in recent years.

Bankman-Fried appeared before a US District Court in New York wearing a blue suit, white shirt and blue tie. He sat at the defense table among his lawyers. According to legal experts, the decision serves to buy him time, as Bankman-Fried will have a better idea of the evidence prosecutors have against him and will plan whether to plea bargain or fight.

The judge in the case set October 2, 2023 as the trial’s start date, and which is expected to be lengthy. In December, U.S. prosecutors in Manhattan unveiled eight criminal charges against the FTX founder, including wire fraud and campaign financing violations.

Leidys Becerra, a content producer at Bloomberg Línea, and Vildana Hajric and Isabelle Lee of Bloomberg News, contributed to this report.