“We must be prepared for a profit-taking in the offing. The numbers in red on Wall Street indicate this,” said a market agent.
For their part, the ADRs of Argentine companies on Wall Street closed with the majority of increases, led by Supervielle (7.3%), BBVA (4.1%) and Transportadora de Gas del Sur (3.3%).
It was on a day when the main Wall Street indices fell sharply, with the Nasdaq leading the losses, after new data highlighted the strength of the US economy and heightened concerns about continued tightening of monetary policy. from the Federal Reserve. Furthermore, the gloomy forecast released by Micron Technology further weighed on the downbeat mood and caused the Semiconductor Index to underperform well against the broader market.
Losses in rate-sensitive mega-cap growth stocks were seen in technology and consumer discretionary, which were the most affected indices among the S&P 500 11 industry sectors.
“We move to the concern for 2023, which is a recession playing out in the United States and probably globally as well,” said Matt Stucky of Northwestern Mutual Wealth Management Company.
The Dow Jones Industrial Average lost 1% to 33,028.22 units; while the S&P 500 fell 1.4% to 3,822.60 units. The Nasdaq Composite lost 2.2% to 10,476.12 units.
Recession fears following prolonged interest rate hikes by the US central bank have weighed on equities this year, with the benchmark S&P 500 index on track for its worst performance since the 2008 financial crisis.
Bonds and country risk
In the fixed income segment, sovereign bonds in dollars stopped their positive streak and fell to almost 7%, due to pronounced profit taking. The main losses were recorded by Global 2035 (6.9%), Global 2030 (6.1%) and Bonar 2029 (5.5%). “The bonds in dollars operated from higher to lower, since after opening almost stable, sales orders appeared that were accentuated towards the closing of the wheel” they commented in the square.
The titles in dollars came from crowning a streak of eight rises in a row, after the good performance registered last month.
“Unlike November, the rise would seem more linked to local than global factors. One might think that the Personal Assets effect may be helping on the flow side, but the truth is that the rally seems too strong to be fully based on that. In my opinion, to a large extent the bonds are recovering at more reasonable prices after very strong falls in previous months that also seemed unjustified”, Ezequiel Zambaglione, head of research at Balanz, told Ámbito.
Indeed, Argentina’s country risk, measured by JP.Morgan bank, rebounded 0.8% to 2,097 basis points, after recording its lowest level in just over six months on Wednesday.
Source: Ambito
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