The Brazil Bond story got us wondering. Where else is the World Cup wreaking havoc on capital markets?
First stop: Malaysia, where stocks fell to three-moth lows yesterday. (And, yes, we included the pic of Miss Malaysia because, uhm, well we kind of forget why.) According to the Business Times,
Analysts expect the trend to continue, at least until the World Cup period is over. The World Cup, which starts tomorrow will end a month later.
“It is summer in the US now. Moreover, with World Cup around the corner, fund managers are likely to be out of action,” an analyst said.
Next stop: all of Latin America!
Latin America's fixation with the football World Cup in the next month is likely to lower volumes in the region's financial markets, but opinions differ on whether it will dampen the volatility which rocked emerging markets around the world in the past month.
With Brazil markets closing early on game days, the Argentine stock market bringing in a giant screen to watch the tournament, and traders betting electronically in Mexico, investors' attention could drift unless global markets tremble, analysts said.