Stock markets panicked because of the elections in Argentina
The results of the preliminary elections and in Argentina is fraught with full-scale government crisis in this important for the world economy Latin American country – the hostess of the previous G20 summit. The scenario can be very similar to the Greek sample 2011-2012 – by the way, and new candidates with the most votes in Argentina, this time also two al and Fernandez (good or not – forgotten), Cristina Kirchner. All formal external signs converge.
All it is fraught with loss of interest in higher-yielding emerging market currencies, including the ruble, as already seen the effect of “spilling” the Argentine shock in neighboring Brazil. And from there as they say, to the perception of Russia by investors and hand.
It should, however, be fair: structurally, the Argentine economy is one of the weakest among major emerging economies and too much export-oriented, and that was its Achilles heel in terms of large obligations to the IMF loan of $57 billion and the gathering over the global economy clouds because of the trade wars. At the end of yesterday, the Argentine Merval index fell 38%, which in itself has overshadowed all other events and business publications in the world, but the peso fell by 15 per cent to 53 per dollar after reaching a peak of 61 pesos to the dollar.
The rouble on this background has been kept a stiff upper lip, trading as of 12:30 GMT at 65,56 for a dollar and 73,43 per Euro. The oil when it is trading at of $58.51 per barrel for Brent, increasing the amplitude of volatility to one and a half percent of the base price of the futures.
According to the U.S. Treasury, the Federal budget deficit the United States for 10 months of the current financial year commencing on 1 October 2018, has already exceeded the total for last year. And despite the fact that last year was considered a record for this indicator. Expenses exceeded revenues by nearly $780 billion – the worst rate in 2012. Since the beginning of the current fiscal year, the deficit already exceeded $866,8 billion.
The expert “International financial centre”