The Argentine Stock Market Is Doing A 180

The Argentine stock market, the Merval, is going green after the news that the country will negotiate with a group of hedge fund managers over $1.7 billion worth of debt dating back to 2001. It's up 1.14$% and climbing.

Earlier this week when the Supreme Court announced that it would not hear the case between Argentina and a group of hedge fund managers known as NML, Argentina's stock market crashed.

The case in question had the country's default riding on it. For over a decade, Argentina had said that under no circumstances would it pay a group of "vulture" hedge funds led by Paul Singer, of Elliott Management.

The group bought Argentine debt after the country's collapse in 2001. When other bondholders restructured in 2005 and 2010, NML refused. Instead they sued the country for the full amount of their payout. In 2012 NYC Judge Thomas Griesa ruled that Argentina had to pay.

The Supreme Court's decision not to hear the case meant that Judge Griesa's ruling stood. When that announcement hit the Merval, everything went south.

In other words, crisis averted.

For now.