After Wednesday’s increases and amid rumors about negotiations between Caputo’s team and the US, the market is once again optimistic.
Within the framework of the return of the Minister of Economy, Luis Caputo, from his trip to Washington this Friday, the dollar bonds extend profits, with increases greater than 4%while Argentine stocks in Wall Street they climb up to 12%. The novelty triggers expectations in the city that negotiations with Donald Trump’s government have reached a successful conclusion.
“What is driving the market today is precisely the expectation of support from the US to Argentina after the forceful statements of Bessent, the Secretary of the Treasury, and Kristalina Georgieva, the director of the IMF, and after the trip of the economic team to Washington,” said Cohen’s economist, Francisco Speroni, when asked by Scope.
He argued that “with the support of the United States, a part of these needs could be financed via a financial account, which alleviates immediate tensions, provides greater certainty regarding payments and allows us to face the elections with greater peace of mind.” In this sense, he added that “The political risk would still be present, but it would no longer impact such a fragile market.
It is worth remembering that Friday is a holiday in Argentina and Monday is a holiday in the US, so the last day of strong volume is occurring today, both in bonds and in the dollar and prior to Milei’s meeting with Donald Trump at the White House.
Argentine shares on Wall Street soar
ADRs climb up to 12% in Wall Street hand in hand with the banking sector: Macro Bank (+12.35%), Supervielle Group (+11.95%), BBVA Argentina (+10.22%) and Galicia Financial Group (+8.88%). “An indication that the market is pricing that an agreement is coming is the increase in ADRs It occurs with greater impact in the banks, which advance around 10%and they are usually the first to receive flow in this type of events,” argued Speroni.
On the leading panel, the S&P Merval in dollars it reaches 1,243.35 pointsan increase of more than 6.5%, while in pesos, it scales 5% to 1,889,469.60 points. The most notable actions are also from the banking sector: Supervielle Group (11.5%), Macro Bank (10.6%) and BBVA Bank (10.3%).
Bonds and country risk
Meanwhile, the bonds climb up to 8% thanks to the Global 46 (+8%), AL30 (+5.2%) and AL35 (+5.7%). Thus, the country risk It may have breached 1,000 basis points, a fact that will not be known today, since investors do not have real-time information on the Argentine country risk.
Source: Ambito
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