Risk shifting from Argentina to Brazil

Fernando Luque 6 June, 2002 | 6:15PM
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Brazil, which will have a general election in October, has become the main focus of concern for investors in Latin America.

Investor sentiment

May was a bad month for all the region’s markets with the MSCI Latin America falling by just over 8% in dollar terms. It should be no surprise that Argentina, which is still anxiously awaiting assistance from the International Monetary Fund (IMF), was the worst performing market with a decline of almost 30% over the month.

The region’s problems were not confined to Argentina: all the markets suffered last month. For example, the MSCI Mexico and the MSCI Chile fell by 8.5% and 6.2% respectively.

But most of the concern is focussed on Brazil. The uncertainty about the future presidenti

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About Author

Fernando Luque

Fernando Luque  is Senior Financial Editor at Morningstar Spain 

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