Brazil and Argentina continue their Carnival holidays, so their markets are closed. However, we can observe declines in their ADRs on a negative day f
Brazil and Argentina continue their Carnival holidays, so their markets are closed. However, we can observe declines in their ADRs on a negative day for global markets.
The celebrations in Brazil and Argentina also coincide with the Chinese New Year. Chinese markets have been closed since Friday and will resume activity tomorrow.
The same will happen with the Latin American markets.
As of today, the observed volume is much lower than usual, with declines of around 30% in the daily volume of ETFs and ADRs related to Latin American countries.
Carnival holidays in Argentina and Brazil are popular festivities celebrated in both countries, often with a significant impact on economic and social activity. It generally is a public holiday that includes two days of the week and the weekend.
In Argentina and Brazil, the days when Carnival is celebrated may vary slightly from year to year. Still, they generally occur around the beginning of the year and can last for several days.
In both countries, the holidays typically include Carnival Monday and Tuesday.
The most representative ETF of emerging markets, the iShares MSCI Emerging Index fund (EEM), maintains a 2% decrease, indicating the general momentum of the day.
Regarding Latin American markets specifically, EWZ, the most representative ETF of the Brazilian market, falls by 3%, while EWW (Mexico) and GXG (Colombia) decline by 0.8% and 1.1% respectively.
The overall context doesn’t help today, as inflation in the United States saw a higher number than expected, especially concerning core inflation, which rose by 0.4% month-on-month.
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