In the Buenos Aires stock market, meanwhile, BYMA’s S&P Merval stock index gained 1.2%, to 88,646 pointsafter losing 0.6% the day before. The main increases are recorded by the shares of Cresud (+6.1%), Cablevisión and BBVA (+3.3%) and Central Puerto (+2.6%). While Transener and YPF fell to 1.8%.
The rise announced by the Fed is the third consecutive and the largest in more than 27 years, and takes reference rates to a range of 1.5-1.75%. The Fed (central bank) specified in its statement that it anticipates other increases in its reference interest rates. Most of the members of the monetary policy committee (FOMC) foresee that, between now and the end of the year, the range will rise to 3.25-3.50%.
In fact, the president of the organization, Jerome Powell, estimated that a new increase of up to 0.75 percentage points is “very likely” at the July meeting.
Lucas Buscaglia, Fixed Income and Macroeconomics analyst at IOL Investonline, stated that “in the face of this challenging scenario, with a North American market that continues to experience a period of high inflation and a rise in rates, we suggest positioning yourself in assets from defensive sectors and solid companies such as Verizon (VZ), Pepsico (PEP), Johnson & Johnson (JNJ), Berkshire Hathaway (BRK.B), and UnitedHealth (UNH).”
Bonds and country risk
Refering to fixed rent It was possible to appreciate rises in the prices of bonds in pesos and a process of rates that begin to compress after the wave of sales seen last week. This especially in the CER bonds that little by little dissipate part of the uncertainty, while Tuesday’s tender is approved and is put to evaluation at the end of the month with a new call for tenders of considerable amounts.
While, in relation to the dollar bonds, the turbulence that took them to lows stopped their course this Wednesday, as happened in most of the rest of the assets. For reference, the AL30 and GD30 bonds not only did they see increases of 2.55% and 1.86% respectively in their local dollar market, but one of the interesting points is that after seeing a spread between local and foreign legislation of around 18% difference, today the ratio between the two bonds below 15%, which although it is high in favor of the bond GD30 with foreign jurisdiction, the improvement is remarkable.
The Argentine country risk fell 0.7%, but it also remained above the worrying 2,100 basis points (it closed at 2,111 points).
Source: Ambito
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