US stock markets rise this Monday, led by profits in banks. The Dow Jones Industrial Average rose 1.7% to 31,817.92 units and the S&P 500 advanced 1.4% to 3,957.10 units and the Nasdaq advanced almost 1% to 11,461.30.
In the local stock market, the stock index S&P Merval up 1.7% to 89,582.04 points, supported by the improvement of the local ADRs listed in New York. Last week the leading panel fell 0.8%. “It is relevant to closely monitor both the metrics of the local economy and the noise that the context of foreign markets may cause“, affirmed Portfolio Personal Investments (PPI).
Bonds and country risk
Regarding fixed income, securities denominated in dollars began the week on the rise due to opportunity purchases, after reaching minimum values last week, in a market that does not find firm support on the near future of the local and global economy.
Bonds denominated in dollars operate with general rises of up to 2.5% led by the Bonar 2029, followed by the Global 2035 (2%) and the Bonar 2041 (1.3%). The most moderate increases respond to Bonar 2038 (0.6%) and Bonar 2035 (0.8%).
“The sovereign bonds in dollars touched minimum parities last week. It is true that the latest falls are explained rather by the context of global markets, but also all the previous downward path was due to an economy that is not on the right track, with serious problems to grow and control inflation”, said Roberto Geretto of Fundcorp.
“Markets in the world regain calm and Argentine bonds regain optimism at the beginning of the week,” said PPI.
He added that at the local level, “political noise and macro alarms explain the performance of the debt. The deterioration of the fiscal numbers in April together with the greater monetary assistance from the central bank in recent weeks and a limited accumulation of currencies open several questions”.
“Investors remain concerned about the development of the domestic economy amid rising retail inflation and internal fights in the government coalition, which end up somehow conditioning a rebound in sovereign prices,” Research for Traders estimated. Last week bonds accumulated an average drop of 1%.
In the weight segment, the bonds that adjust by CER (follow the evolution of inflation) operate mixed, but the advance of the Quasipar (+3.4%) and the PR13 (+1.4%) stands out.
Finally, the country risk measured by the JP.Morgan fell sharply 31 basis points to 1,920 units.
Source: Ambito
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