The country risk also reflected the general rearrangement of the market after the national holiday on the eve of the population and housing census, when Wall Street led a global financial meltdown on fears of a massive economic recession due to advancing inflation.
Against this background, sovereign bonds denominated in dollars operated with declines of up to 4.1%such is the case of Bonar 2029. In addition, they showed firm falls Global 2029 (-1.9%); the Bonar 2035 (-1.1%); and Bonar 2038 (-0.9%). The exception of the day was the Global 2041, which was up 1.1%.
“Fears of recession and high inflation continue to undermine market confidence, impacting global stock markets (…) The fixed income segment (in Argentina) is not going through a good time and this has an impact on country risk”commented from Cohen.
Global inflationary pressure hits economies due to fears of lower activity, without ruling out recession, a scenario that is further aggravated by the war in Ukraine and the resurgence of COVID in China.
In the segment of pesos, the titles linked to inflation (CER) operated unevenly, with rises led by the Boncer 2026 and Quasipar (+0.5%), and losses led by Par (-0.5%).
Argentina has just reported a 6% price increase in April, which is why private analysts project an increase in the cost of living of over 65% in 2022.
In another order, Argentina and the International Monetary Fund (IMF) are making “good progress” in the first revision of an agreement signed in March and the established objectives remain unchanged, a spokesman for the agency said on Thursday.
While, The Ministry of Economy will tender this Thursday a basket of titles to finance the Treasury. The portfolio offers savers a combo of ‘Lelites’, ‘Lede’, ‘Lecer’, ‘Bono Linked’, ‘Boncer’ and ‘Bote’.
In the Buenos Aires bag, the leading index S&P Merval It fell 1.4% to 89,582.06 points, led by energy and financial firms. Let us remember that on Wednesday the local market did not operate due to the National Census, so it was adjusted to the sharp stock falls of up to 10% on the New York Stock Exchange.
But this Thursday, the Argentine papers recovered and bounced up to 9% on Wall Street.
Source: Ambito
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