In that framework, the leading index S&P Merval of Argentine Stock Exchanges and Markets (BYMA) fell 2% in pesos in the week, ending this Friday almost unchanged at 86,395 points, against a strong retraction of 3.3% the day before and 0.21% on Wednesday. If we measure it in CCL dollars, the fall of the leading panel in the week was 2.5%.
The aggressive tone of the Fed, with signs of interest rate hikes in the future, negatively affected risk assets. Although at the organization’s meeting on Wednesday it rose 50 basis points to a range between 0.75% and 1% (in line with expectations) and ruled out an increase of 75 points for the June meeting, the market “did not buy” that assertion and considers that the US agency is going to raise rates until it manages to control inflation in the US.
For this reason, the 10-year rates jumped above 3%, something that had not happened since 2018, and the dollar index climbed to 103, its highest level in 20 years. The VIX index (which measures risk) exceeded 30 points, and the technology stock markets collapsed.
Bonds and country risk
In the fixed income segment, on the other hand, sovereign bonds denominated in dollars fell in the week to 3.3%.
In this framework, the Argentine country risk prepared by the JP.Morgan bank rises 1.4%, to 1,808 units.
Source: Ambito
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