Mercado Libre sinks almost 10% on Wall Street due to a general fall in technology companies

Mercado Libre sinks almost 10% on Wall Street due to a general fall in technology companies

In the Buenos Aires stock market, meanwhile, the Leading S&P Merval index rises 0.2% to 90,481.31 pointsand adds to the advance of 2.5% on Monday.

The national government suffered on Monday the resignation of a key secretary in the economic cabinet such as Roberto Feletti who was in charge of Internal Trade. For its part, the Treasury must still reorganize the team to try to stop the inflationary escalation that in 2022 would have a floor of 60%.

For its part, in the international context it also influences local assets, US inflation led to a modification of the monetary policy of the Federal Reserve that continues with its aggressive increase in rates. In turn, the Russian war in Ukraine and the advance of Covid-19 in China, harm the stock markets and therefore the local market.

Bonds and country risk

As for fixed income, securities denominated in dollars fell across the board after a Monday with firm rises of up to 5%. The recoil is led by el Global 2035 (-1.2%) followed by Bonar 2041 (-0.9%) and Bonar 2038 (-0.8%).

“The manifest risk aversion pushed fixed income in emerging markets through higher risk premiums. The index of fixed income of emerging markets experienced a fall of 3.5% in the last month, product of a greater fall in the bonds with longer maturities,” commented analysts at Balanz.

Finally, the country risk measured by the JP.Morgan advances 0.7% to 1,925 units, after posting its biggest daily drop in two months on Monday.

Source: Ambito

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