Buenos Aires (AFP) - Argentine stocks closed down 7.22 percent Tuesday, dragged down by falling oil prices that hit new five-year lows before recovering.On a gloomy day for equities worldwide, the Merval stock index in Buenos Aires tumbled nearly 700 points to 8,888.49.State oil firm YPF and Brazil's scandal-tainted Petrobras led the plunge into the red, losing 10.58 percent and 8.38 percent, respectively.The Argentine peso fell 0.12 percent to 8.56 to the dollar.Oil prices have fallen more than 40 percent from their 2014 peaks in June owing to a supply glut, slowing growth in China and emerging-market economies, a recession in Japan and a near-stall in the eurozone.Stocks also slipped in Asia, Europe and on Wall Street Tuesday as China tightened its rules on speculative trading and Greece's surprise move to hold a high-stakes presidential election early renewed fears about the struggling eurozone.Argentina is facing a host of its own economic headaches, including a debt default, low foreign reserves and high inflation.The South American country is locked in a court battle with two US hedge funds that refuse to accept its plans to restructure the $100 billion debt it defaulted on in 2001.A federal court in New York has blocked the country from repaying creditors who agreed to take steep losses on their bonds until the impasse is resolved.Inflation meanwhile stands at 21.4 percent for the period from January to October, according to the government -- though independent analysts put the figure at 30 to 40 percent or more.Stocks were also down in other major South American economies.Brazil's stock market fell 0.16 percent and Chile's 1.46 percent.Join the conversation about this story »
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