Among the factors that impacted the local market, one of the news was that Argentina agreed with the Paris Club on a new “time bridge” and managed to extend the March payment for two and a half years, the same duration as the program with the IMF. In this framework, Guzmán will continue to renegotiate the details with the entity.
On the other hand, the Central Bank made official a new rate hike, the third in the year. The increase is 200 basis points on the Leliqs, which went from 42.5% to 44.5%. The fact is executed in an environment of inflationary acceleration and with the objective of approaching a positive real rate.
Regarding prices, ADRs experienced a moderate better performance than the benchmark market in the United States, with mixed prices. Individually, among the Argentine shares listed abroad, Vista Oil (VIST) managed to advance more than 8% along with the rise in crude oil.
On Wall Street, the New York Stock Exchange closed at half-staff, feeling the aftermath of the rally in recent sessions when oil prices rose again.
According to preliminary results at the close, the Dow Jones fell 1.29% to 34,358.43 points after five of six sessions higher. The Nasdaq index, mainly technology, fell 1.32% to 13,922.60 points and the S&P 500 fell 1.23% to 4,456.20 points.
10-year bond yields fell back after rising sharply earlier in the week on inflation fears and the Federal Reserve’s (Fed, central bank) monetary reaction.
The bonds deepened their losses in the face of growing questions about the future of the domestic economy despite a recent agreement with the IMF to restructure a large debt.
To finish, the dollar sovereign bonds they experienced declines in both legislations and throughout the entire curve. Referring Bonuses AL30D and GD30D presented falls of 1.57% and 1.60% respectively.
“With these figures, there are already several rounds in which they do not show good daily returns and the agreement (with the IMF) does not seem to have changed their spirits either. For the moment, they do not denote an interest that mobilizes them from the minimum“, raised the analyst Javier Rava.
The market adjusted to the increase of 200 points in the reference rate of the Central Bank (BCRA), to 44.5% per year for the short term of 28 dayswithout ruling out a new adjustment in April due to the inflationary pressure in the dance.
“The IMF understands the rise in rates as an anti-inflationary policy, while the BCRA understands positive returns as a reward for staying in pesos and discouraging dollarization,” a banking source from the official sector told Reuters.
The IMF board will meet on Friday to vote on the rescheduling of debt for some 45,000 million dollars recently endorsed by the Argentine Congress, after the South American country achieved a “time bridge” with the Paris Club to pay maturities for 2,000 millions of dollars.
Financial businesses also took precautions from Thursday’s inactivity due to a national holiday.
The Argentine country risk of the JP bank. Morgan rose 20 points to 1,807 basis points by 2000 GMT, against an all-time high of 1,991 points earlier in the month..
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
