Emerging markets theme BRIC comprising Brazil, Russia, India and China while VISTA theme comprising Vietnam, Indonesia, South Africa, Turkey and Argentina.
Argentina similar to Turkey part of VISTA is said to have maintain a high US dollar denominated debt.
https://www.businessinsider.com/emerging-markets-suffer-after-dollar-debt-binges-2018-8/?IR=T
https://www.ft.com/content/2bad9bbc-aca6-11e8-94bd-cba20d67390c
https://www.ig.com/sg/view-ig/argentina-the-latest-casualty-of-the-emerging-markets-sell-off-180910
https://qz.com/1274875/how-argentina-went-from-selling-100-year-bonds-to-an-imf-rescue-in-a-matter-of-months/
With post G20 meeting hosted by Argentina concluded on 30 November to 1 December, it was a successful meeting between USA and China where they had implement trade war tariff truce for 90 days.
https://www.msn.com/en-ca/news/world/a-look-at-what-happened-at-the-g-20-summit-in-argentina/ar-BBQo4La?li=AAgfIYZ
https://www.bloomberg.com/news/articles/2018-07-22/highlights-from-the-g-20-summit-in-buenos-aires-this-weekend
Let us take a look at the charts of VISTA theme attached is Argentina Merval Index
We are still at 50th percentile of the bullish market which had many more years to go. Charts display bullish strength where Argentina Merval Index had seen a minor retracement correction after hitting 35,500 points high in January 2018.
Argentina despite maintain a high US dollar denominated debt, its stock market has a stellar performance instead of a under performance stock market under the leadership of President Macri who is anti populist economic policies, and introducing a series of pro market reforms. Argentina Merval Index is on an uptrending chart based on historical records till date.
With the recent emerging markets technical correction of over 20% enter into a technical bear market, lots of financial analyst expert are calling for a bear market to take place in year 2019.
Surprisingly, Argentina Merval Index is less affected by the recent US dollar strengthening and rising treasury yields for it is a weaker stock market index, currency markets peso where it should have been greatly affected like the Turkish ISA 100 National equity market and Turkish Lira for maintaining a high US dollar denominated debt.
Our of proportion VISTA theme markets comprising Vietnam, Indonesia, South Africa, Turkey and Argentina, 4 out of 5 are in a stronger uptrending stock market except South Africa. So are we going to see a financial crisis taking place soon?
Argentina Merval Index Monthly Chart Historical 7 Dec 2018
Argentina Merval Index Monthly Chart Historical 7 Dec 2018 with Technical Analysis
bullish chart pattern includes ascending triangle, price is seen back testing the upper price channel blue color lines as support, will it hold? flag & pennants horizontal flag completed price movement, may see a 3rd wave of horizontal flag breakout after consolidation (swing trade).
Bearish chart pattern include a possible double top M chart formation, rising wedge chart pattern refers to using upper price channel blue color lines and red color support uptrending line.
lets take a look of which country is the major trading partner of Argentina
https://wits.worldbank.org/CountryProfile/en/Country/ARG/Year/LTST/TradeFlow/EXPIMP/Partner/by-country
Disclaimer: All news, information and charts shared is purely by my research and personal views only. This is not a trading recommendation or advice but on the basis of sharing information and educating the investment community. Different traders and investors adopt different trading strategies and risk management approach hence if in doubt please approach or seek clarifications with your Financial Adviser, Broker and Banker.
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