Argentina’s financial markets operate mixed this Thursday selective rearrangements of portfolios, in a square that celebrates decision of the Chamber of Deputies of Congress which endorsed the presidential veto of a law that guaranteed the financing of public universities.
Ratification of President Milei’s decision shows signs of a greater positioning of the ruling party in Congress, where it has only a handful of legislators.
“In this way, not only did it avoid an increase in spending of 0.14% of annual GDP, but it also demonstrated certain strength to contain legislative initiatives that could compromise the fiscal balance,” said clearing and settlement agent Cohen, noting that “the veto drives the market.”
Bonds fall and country risk rises
In this context, dollar bonds fell up to 2.1% led by Global 2029 (GD29), followed by Global 2041 (GD41) (-2%) and Bonar 2041 (GD41) (-1%). Meanwhile, Global 2038 (GD38), Global 2046 (GD46) (1.7%) and Bonar 2038 (GD38) (0.3%) rose up to 2%.
He country risk prepared by the JP Morgan bank rises 13 units to 1,138 basis points, after reaching a floor of 1,118 units on Wednesday, its minimum value during the president’s administration Javier Milei and at levels similar to those recorded in September 2020.
S&P Merval and ADRs
On the other hand, the S&P Merval rises 0.25% and extends optimism for the third consecutive day. On Wednesday, it advanced 2.3% after the vote in Congress was known. The increases are led by Cresud (1.8%), Edenor (1.7%) and Comercial del Plata (1.7%). Meanwhile, Telecom Argentina, Central Puerto (-1.6%) and BBVA (-1.1%) lost up to 2.1%.
“The failure in the opposition Congress to reject the presidential veto is a clear signal in maintaining the government’s course in maintaining its fiscal policy, in addition to a government capable of maintaining its agenda without having broad representation in that entity,” said Capital Markets Argentina.
Also “The laundering process has a very positive impact on Argentine financial assets, given the significant decrease in country risk and the upward trend in local stocks”.
The National Institute of Statistics and Censuses (INDEC) will announce this afternoon the index of September consumer prices.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
