With a post title like that, discretion is the greater part of valour
All fun down here, as the likelihood of the Obama stimulating the world is reflected in trading all over the region. Brazil’s Bovespa is up 4%, Argentina’s Merval up 3% and copper is zooming and dragging PCU, Peru and Chile out of da funk. A special mention is needed for the banks, as fun is being had all over the region in that sector. Here are a few US-traded ADRs as examples:
- Peru’s Credicorp (BAP) up 4%, even though it announced a crappy quarter (it was Madoffed to the tune of $45m) after the bell yesterday.
- Brazil’s Itau (ITU) up 9%
- Argentina’s Grupo Galicia (GGAL) up 12%
- etc (pick your own fave…plenty to choose from)
The general effect of the soon-to-be stimulated States on trading has even been strong enough to see Peru’s Nuevo Sol currency (PEN) strengthen against the greenback after its surprise (for some at least, hahaha) rate cut last night. Proof, if needed, that the US economy still calls the LatAm tune bigtime.