Global stocks rise after the boost from US Treasury Secretary Scott Bessent’s tweet and the announcement of the bond buyback.
ADRs rebound up to 6.4% and dollar bonds extend their gains this Tuesday. Global securities are trading with slight increases, which build on the rebound they experienced near the close of trading on Monday, after the Secretary of Finance, Pablo Quirnowill announce the start of negotiations for repurchase debt sovereign.
Dollar securities rise slightly in New York and they operate mixed at the local level, with Global 2029 leading the increases (1.2%). Thus, the country risk measured by JP Morgan remains above 1,000 basis points (bp), after closing at 1,048 bp last Monday.
Portfolio dollarization continues to dominate the financial market scene Argentina as a prelude to the legislative elections next Sunday, where the Government will seek to add seats in Congress in the face of the current minority in both chambers.
The “explicit support of the government of USA served to calm the markets and temporarily remove doubts about the sustainability of the economic program, but the progress of economic activity seems to have been linked to the electoral result that the Government obtains in October,” reported the consulting firm Orlando Ferreres & Asociados.
Argentina announced the day before that it began negotiations to develop a sovereign debt buyback aimed at reducing the country’s financing cost and strengthening investment in education. This operation “is part of the swaps called ‘Debt for Development’, which may be focused on Health, Nature, Climate, Education or other Development objectives of the countries.
They are swaps that aim to free up countries’ fiscal resources in exchange for debtor countries’ commitments to invest. in some of the aforementioned areas,” said consulting firm 1816.
Meanwhile, A group of American banks, including JP.Morgan Chase, Bank of America and Goldman Sachs, seek guarantees and endorsements to set up a relief fund between private parties to lend another US$20 billion to the southern country, the Wall Street Journal reported based on people familiar with the matter.
ADRs and S&P Merval
At the local level, the leading index S&P Merval it climbs 2.8% to 2,033,219.6 points, while its counterpart in dollars rises 1.6% to 1,280.58 points. Among the stocks that rose the most is Macro Bank (+5.2%); BBVA Bank (4.8%) and Aluar (4.5%).
Meanwhile, the ADRs operate with a majority of increases of up to 6.4% led by BBVA Bank; continued Macro Bank (6%) and Supervielle Group (5.4%).
Market sources indicated that operators remain expectant before the elections, and are less inclined to place heavy bets after the long electoral calendar.
Source: Ambito
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