This day, in addition, the local market he is attentively awaiting the inflation index for May and the result of an auction of Treasury bonds, the results of which will be known in the afternoon.
Argentina announced on Monday an optional regime for copper export rights through the option of a progressive rate with the aim of promoting production and foreign business.
For its part, Argentine companies listed on Wall Street operate mixed. The biggest raises are for BBVA bank (+2.9%), Edenor (+2.6%), and Grupo Financiero Galicia (+1.8%). The decreases are led by Transportadora Gas del Norte (-1.8%), Banco Supervielle (-1.3%), and Mercado Libre (-1.4%).
On Monday, in a day of panic and high global risk aversion derived from the increased probability of a recession in the US, the argentine stocks sank up to 12% on Wall Street, while the bonds in dollars they lost up to 5.4%, to record new historical lows, which led the country risk to exceed 2,100 points, against a local context of growing economic and financial doubts after the liquidation of titles in pesos last week, and the jump of the stock market dollars.
Fears that a world’s highest inflation determine that the central banks raise their interest rates, strongly affecting economic growth, together with the challenges that Argentina must face in the coming months, caused a strong selling trend due to unwinding of asset positions.
Bonds and country risk
CER bonds rebound up to 6% in this round, while the Argentine country risk prepared by the JP.Morgan bank increased one basis point to the absolute record of 2,125 units, after relocating with a base of 1,083 points after the debt renegotiation of the 2020.
With some inflation-linked local currency bonds under pressure, the government has been forced to take a defensive stance against default risks. Official entities even went out to buy debt to stop the debacle.
“As for the barbarism of stopping paying the debt in pesos: our government would never do that,” Economy Minister Martín Guzmán said in a tweet.
Source: Ambito
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