In addition, the local market was exposed to the Strong volatility on Wall Street, which started with strong losses and closed with firm increases, after the presidential debate and the inflation data in the US.
Thus, on the New York Stock Exchange, Argentine stocks closed with generalized advances, led by America Corporation (+7.1%); Central Port (+6.5%); Edenor (+5.1%); Cresud (+4.6%); and Telecom (+4.6%).
On this day, in addition, the S&P Merval rebounded 2.9% and advanced to 1,764,128 points. In dollars (CCL), the leading panel surpassed the 1,400-point mark, climbing 3.1% to 1,416.08 points, the highest level since 2018.
However, the shares that rose the most in the local market were those of Central Port (+6.3%), Edenor (+6.3%), and Northern Gas Transporter (+5.4%).
The Consumer Price Index (CPI) surprised the market by registering a rise of 4.2% in August, after increasing by 4% in July, with which it accumulated an increase of 94.8% over the course of 2024, according to the National Institute of Statistics and Census (INDEC). This figure was worse than expected by analysts, who had projected a figure below 4% (3.9%). In addition, inflation accelerated at the core level for the second consecutive month (from 3.8% to 4.1%).
“The data somewhat confirmed the idea that the short-term struggle is being won by inertia compared to the downward trend. Looking ahead, in September we will see some of the impact of the reduction of the PAÍS tax on goods and freight and we have to see how the elimination of provincial and municipal taxes on service bills evolves.”he commented to Scope Pedro Siaba Serrate, Head of Research & Strategy at PPI.
At the same time, the market was keeping another eye on the House of Representatives, where the ruling party, with several allies, was able to confirm on Wednesday the presidential veto of the pension reform, which granted an increase to retirees, while in front of Congress a march repudiated the decision and there was repression by the security forces. Several arrests were reported and more than 20 were injured.
In the United States, meanwhile, the market readjusted after the Democratic candidate Kamala Harris put Republican rival Donald Trump on the defensive in a heated presidential debate.
In addition, August retail inflation was in line with expectations at the headline level (+0.2% m/m), although it surprised in the core measurement (+0.3% m/m versus +0.2% expected and from the previous month), SBS analyzed. After a false start, the S&P 500 finally closed with an increase of 1.07%, while the Nasdaq 100 climbed 2.17%.
Elsewhere, the 10-year bond rate rose 1 basis point to 3.65%, with WTI crude oil recovering 2.4% to $67.30 after Tuesday’s sharp drop.
Bonds and country risk
The Dollar bonds, unlike stocks, traded mixed, while the country risk of the JP Morgan bank closed stable at 1,445 basis points.
“Just as bonds did not fall when Congress passed the pension reform bill two weeks ago, they have not reacted positively to the veto now either. I think the market is not worried about the fiscal issue now, which paradoxically was the main concern last year,” analyzed Siaba Serrate.
Meanwhile, Bopreales were also weak, falling by an average of 50 cents. On the other hand, dollar-linked sovereigns traded mostly lower, falling by an average of 0.6%, while duals had mixed results (heavy in the short term and stronger in the long term). CER segment, the entire curve was generally in demand, rising by an average of 0.7% (even the TZXM that were being auctioned this Wednesday).
Lecaps moved after the publication of the August inflation data and were offered in the long term. At closing prices they were yielding between 43.80% apr (30/9) and 57.26% apr (29/8).
Finally, Economy reported that In the tender, it awarded $6.99 billion, between Lecaps (five new and one reopening) and zero-coupon Bonceres (three reopenings), having to validate a premium over market rates.
Milei will go to Congress on Sunday night to present the 2025 budget project, where the consolidation of the “zero deficit rule” will be deepened.
Source: Ambito
