SCANDAL $ LIBRA: What does the market expect for shares and bonds, in the midst of the stock market?

The Government faces a key moment to recover market confidence, depending on internal economic stability and international support, especially through its relationship with the International Monetary Fund (IMF). It seems that Argentine actions They regained ground after the fall recorded on Monday, driven by the rebound on Wall Street and later in the local market, in a marked context for the pound effect.

After the holiday in the US on Monday, Wall Street resumed its activity and Argentine actionswhich are quoted in the American stock market, started with a mixed trend. The day was marked by the increase in volatility generated by the scandal that shakes the government, which triggered nervousness in the markets. In particular, Cresud led the losses with a decrease of 4.1%, followed by Loma Negra, BBVA and Mercado Libre, which retreated between 2.4%and 1.4%.

On the other hand, some actions recorded notable increases, such as Adecoagro, which rose 12%, and those of Ternium, Corporation America, South Gas Transporter and Tenaris, with increases between 3.1% and 2% .

The collapse in Monday’s local stock market was related to the controversy generated by the launch of $ LIBRA, a “memecoin” promoted by President Javier Milei. The collapse of the cryptocurrency generated significant losses and left thousands of affected investors.

Market prospects after controversy

An analysis of Delphos Investment considered the episode as a “foot shot“For local financial assets, noting that markets are now mainly influenced by global factors and also by specific internal reasons.

The report highlighted two key factors for the future of markets: the removal of the exchange rate and the legislative elections of 2025. Although he recognized the efforts of Milei and the Minister of Economy, Luis Caputo to stabilize the situation, the report stressed that what happened It could affect the electoral perspectives of the ruling party, which so far seemed to have a clear path to the 2025 elections.

For its part, Juan Manuel FrancoChief Economist of Grupo SBS, indicated that the market will be attentive to the evolution of the decline in local assets and pressure on the dollar, to evaluate government responses.

In its analysis, Franco warned that, although there are solid foundations in some local actions in the energy sector, recent events could have a short -term negative impact on the market. However, he projected that factors such as the elimination of exchange controls or an agreement with the IMF could act as catalysts and reverse expectations in the near future.

“The dollar debt had a normal wheel with falls that were quite in line with what we saw in other credits in the region such as Brazil, Chile, Mexico or Peru; as always adjusting for the fact that Argentina has greater volatility,” stirred an operator to Scope.

The exchange market also felt the impact

Financial dollars registered a slight decline, and the free dollar closed to the same level as Monday, After showing an increase of 10 pesos in the opening of the day. However, not everything was positive: the Central Bank reported a loss of US $ 394 million in its reserves, which reflected a strong intervention in the market to prevent the quotes from continuingespecially considering that the previous day had ended with a buyer balance of US $171 million.

Given this situation, the government quickly focused on its economic agenda, focusing mainly on the president of the United States, which begins tomorrow. On Thursday, Milei will meet with Elon Musk, businessman and current US government official, and with Kristalina Georgieva, IMF managing director.

Thus, market evolution suggests that the governanceor has an opportunity to quickly overcome the crisis that affected the image of Milei. However, this rebound will depend on a vote of conditioned confidence: first, trusting that the crisis does not continue to climb; And secondly, Waiting for IMF News that guarantee the necessary dollars so that the government arrives without shocks to the elections.