“The pressure of the new issue is not only going to remunerated liabilities but to the exchange rate. The official (peso) remains relatively cheap against general inflation,” said the settlement and clearing agent Neix. For his part, Christian Buteler, a financial analyst, stated that “The uncertainty generated by the BCRA with its new (exchange) restrictions caused a new jump in prices”.
Despite the financial turmoil, the Argentine Government complied this Friday with the capital due payment with the International Monetary Fund (IMF), for an estimated amount of 975 million Special Drawing Rights (SDR, the monetary unit of the organization), equivalent to US$1,285.9 millionreported this afternoon the Ministry of Economy.
The ADRs continue to seek to take advantage of the momentum of the Northcontrary to the bonds in dollars, given the political noise and economic uncertainty, which act as serious conditions for investors despite the punished prices.
So it is that the operators are attentive to the political signals that the different speeches and declarations are leaving, given that quenching said focus of uncertainty within the ruling coalition is a necessary condition to try to face an economic ‘road map’ that calms the nervousness of the agents.
Only then will attention be able to move to the implementation of measures aimed at a convergence in fiscal, monetary and exchange imbalances, which are crucial in seeking to stabilize the deteriorated expectations of investors.
In the fixed income segment, bonds in dollars traded with drops of up to 1.5%, while titles in pesos operated with increases of up to 2.4%.
Even so, In the short term, the evolution of the debt in pesos arouses greater concern, given the auction next week – and the challenging roll-over schedule – since recovering investor appetite soon is essential since it is the only voluntary financing available.
The solid creation of jobs is looking to be quickly digested by Wall Street, and so it is trying to extend the best tone of the last wheels, even though the data could incline the Fed to prolong its more ‘hawkish’ inclination despite the risk of recession .
In the meantime, the country risk prepared by the JP. Morgan bank lost 0.9% to 2,652 basis points.
Source: Ambito
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