In the Buenos Aires stock market, meanwhile, the Leading S&P Merval index rose 1% to 91,271.67 pointsadding to the 2.5% advance on Monday.
In the leading panel, the biggest rises were for Banco Macro (+5%), Pampa Energía (+4.9%), and Transportadora Gas del Norte (+3.9%). For its part, Banco Superville (-2.4%), Edenor (-1.7%) and YPF (-0.9%) were the papers that suffered the most this day.
“The latest drops (in prices) are explained more by the context of global markets, but also the entire 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 Fundcorp’s Geretto, and expanded: “On this last point, lowering inflation that is estimated to be around 70% this year with price controls seems to be extremely unlikely.”
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 his part, the Minister of Economy, Martín Guzmán, appointed Guillermo Hang to replace Feletti. In this way, he centralized in his portfolio the attempt to stop the escalation of inflation, which in 2022 would have a floor of 60%.
For its part, the international context also influenced local assets. US inflation, which led to a modification of the Federal Reserve’s monetary policy with a more aggressive policy of raising rates, affects some sectors in particular, such as technology. In this context, this day, the Nasdaq index fell 2.4%.
“If we step back and recognize the major market drivers, the fact is that the Fed’s turnaround and the change in interest rates influenced prices in all of the capital markets,” said Bill Northey, chief investment officer. of US Bank Wealth Management, and expanded: “In the last two weeks, we saw some degree of macroeconomic deterioration start to show up in corporate earnings and economic releases.”
Bonds and country risk
Regarding fixed income, securities denominated in dollars have mostly fallen after a Monday with firm increases of up to 5%. The decline is led by Bonar 2029 (-1.4%), Bonar 2038 (-0.9%), and Global 2035 (-0.9%). For its part, the one that rose the most was Bonar 2041 (+0.4%).
“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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