The result turned on the alarms in the markets and led Morgan Stanley to withdraw his recommendation to buy bonds in dollars. Wells Fargo warnings.
The Wall Street banks They began to give their first views after the electoral defeat of Freedom advances in the province of Buenos Aires. Axel Kicillof’s electoral victory surprised investors by the margin of difference between one political party. In that sense, Morgan Stanley, Success but forceful, announced the withdrawal of the recommendation to buy the Sovereign bonds in dollars. Even more forceful, Wells Fargo He warned about Exchange and debt crisis risks.
“Morgan Stanley Closes Argentina Buy All After Milei’s Defat”. Thus the report titled Morgan Stanley, one of the American reference banks. It is worth remembering that days ago, in its latest pre -election report, the entity was one of those who stressed that Argentine assets were lagging behind this year And he suggested that “the impulse of the reforms was not yet reflected in prices.” In that sense, he had recommended positioning himself long before the elections in the province with a 11 -point upside. However, on this post -election day, the most affected dollars are long bonds.
This is mainly due to the fact that the risk factor that is weighing on investors is that the Treasury and the BCRA are forced to intervene the exchange rate, with an adjusted fire capacity, which puts it pressure to comply with maturities in future dollars.
Wells Fargo.jpg
Bankrate
Wells Fargo’s look
In the same line of caution, Wells Fargo warned that the electoral result in the province reduces the political viability of Milei’s adjustment and raises the risk that the country will face exchange and debt crisis scenarios. According to the American bank, the defeat in the main electoral district of the country questions the possibility of consolidating legislative majorities in October and, with it, the continuity of a long -term stabilization plan.
“October legislative elections will be the real test to determine if Argentina can open a new economic future, but recently calls into question the existence of a social appetite for a lasting change,” said the report.
In the note, he emphasizes that Argentine investors were “too optimists” about the ability of Milei and the Lla of dominating the mid -term elections, however, they warned hard: “We consider that the probability that Argentina backs towards another period of exchange crisis and default sovereign was higher than we initially thought. ”
“Our base scenario continues to contemplate that Milei and Lla have a relatively favorable performance, but our confidence that this scenario is finalized again,” the analysts concluded.
News in development.-
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
