Argentine shares lag on World Cup defeat - KTEN.com - No One Gets You Closer

Argentine shares lag on World Cup defeat

Posted: Updated:
(AP Photo/Rodrigo Abd). An Argentina soccer fan sleeps on Copacabana beach the morning after his team was defeated by Germany at the World Cup final, in Rio de Janeiro, Brazil, Monday, July 14, 2014. (AP Photo/Rodrigo Abd). An Argentina soccer fan sleeps on Copacabana beach the morning after his team was defeated by Germany at the World Cup final, in Rio de Janeiro, Brazil, Monday, July 14, 2014.
(AP Photo/Rodrigo Abd). Argentina soccer fans, one wearing a Lionel Messi soccer jersey, sit on Copacabana beach the morning after thier team was defeated by Germany at the World Cup final, in Rio de Janeiro, Brazil, Monday, July 14, 2014. (AP Photo/Rodrigo Abd). Argentina soccer fans, one wearing a Lionel Messi soccer jersey, sit on Copacabana beach the morning after thier team was defeated by Germany at the World Cup final, in Rio de Janeiro, Brazil, Monday, July 14, 2014.
  • NationalMore>>

  • Police hunt for 2 who carjacked SUV, killed 3 kids

    Police hunt for 2 who carjacked SUV, killed 3 kids

    Saturday, July 26 2014 2:02 AM EDT2014-07-26 06:02:47 GMT
    Police are searching for two men who carjacked an SUV and plowed into a group of children and adults selling fruit at a Philadelphia street corner, killing three kids and seriously injuring two women.More >>
    Police were searching for two men who carjacked an SUV and plowed into a group of children and adults selling fruit to raise money for their church, killing three kids and critically injuring their mother and the...More >>
  • Ohio State under shadow again, this time with band

    Ohio State under shadow again, this time with band

    Saturday, July 26 2014 12:45 AM EDT2014-07-26 04:45:52 GMT
    The Ohio State marching band is moving forward without its director; a day after he was fired they're performing with the Columbus Symphony in what's often considered the band's unofficial season kickoff.More >>
    Having forced out a beloved football coach and watched its president retire after a series of verbal gaffes, Ohio State University again finds itself grabbing headlines with the firing of a celebrated marching band...More >>
  • Baby dies after being left in hot car in Kansas

    Baby dies after being left in hot car in Kansas

    Friday, July 25 2014 11:56 PM EDT2014-07-26 03:56:40 GMT
    Police have arrested the foster parent of a 10-month-old girl who died after being left inside a hot car in Wichita, Kansas.More >>
    A 10-month-old Kansas girl died after being strapped for more than two hours inside a sweltering car, and police arrested a foster parent who said he'd forgotten about her until something on TV jogged his memory, an...More >>
By PAN PYLAS
Associated Press

LONDON (AP) - It's not just Argentine soccer fans who woke up depressed following their nation's 1-0 defeat to Germany in the World Cup final. Traders in Buenos Aires were also feeling blue.

Though Argentina's main Merval index closed up 0.2 percent on Monday, it traded sharply lower for much of the session after the team succumbed to a late goal Sunday from German striker Mario Goetze in Rio de Janeiro.

Despite the late advance, the Merval underperformed other markets in the region and around the world, notably Germany's DAX, which closed 1.2 percent higher - the biggest gain Monday among the major European stock indexes.

The underperformance was widely anticipated.

Alex Edmans, a professor at London Business School and the Wharton School of the University of Pennsylvania, has analyzed stock market responses to World Cup defeats and found those from losing nations have underperformed.

"Over the course of the World Cup, there have been 39 losses by countries with an active stock market," he said. "In two-thirds of these cases, the national market has underperformed the world market on the next day."

According to Goldman Sachs, the depressed mood may weigh on Argentine shares for a while to come.

In a report prior to the World Cup, the bank said that since 1974, most nations that lose in the final underperform for a month as traders suffer "a post-final bout of the blues."

Overall, it found that the victorious countries' stocks outperformed the global market by 3.5 percent in the following month. Seven of the nine losing finalists, on the other hand, underperformed by 1.4 percent.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.