On the other hand, the external markets operated with volatility attentive to the inflation data in the US, which could prompt the Federal Reserve to a new increase in interest rates.
Under this scenario, Argentine hard currency securities lost up to almost 5%with casualties led by Global 2029 (-4.7%); the Bonar 2030 (-3.8%); and Bonar 2035 (-3.2%).
“The Global (bonds) did not buy the Batakis measures. It seems that investors have doubts about this more fiscal approach that the new minister tried to show until now”, they said from the consultancy StoneX.
In effect, the risk country measured by JP. Morgan bank rose important 52 basic points, to 2,722 unitsclose to its historical record level of 2,728 units reached last week, after the departure of Martín Guzmán from the Ministry of Economy.
Batakis stated the day before that It will maintain goals agreed upon with the International Monetary Fund (IMF) and announced new measures aimed at reducing the large fiscal deficit, in an attempt to calm the financial markets.
“The market approved the mention of continuing to work with the IMF in relation to the agreement reached by the previous Minister. However, uncertainty remains high among investors, added to a declining international context”, Rava Stock Exchange said.
Fears of a global recession in the face of high inflation and the resurgence of Covid-19 in China also conditioned world markets.
In the peso segment, on the other hand, CER bonds extend their recovery after the punishment they suffered last month, and posted increases of up to 4.8% (TX28).
in the stock market, the S&P Merval index of Argentine Markets and Stock Exchanges (BYMA) lost 0.8%, to 103,561.97 points, mobilized by the decreases recorded in energy and financial actions.
On Wall Street, Argentine stocks were mostly trading in negative territory. The declines were led by Bioceres (-6.4%); Galicia Financial Group (-3%); and YPF (-2.5%), that during the day drilled the u$s3.
“A priori, Batakis’s message to stay in line with the International Monetary Fund (IMF) is positive. The announced measures did not bring any surprises and this helps to avoid further deepening the current noise”they said from Portfolio Personal Investments (PPI).
However, the market believes that the announcements are not enough to correct the current imbalances. “The Minister spoke of the order and balance of public finances. A priori, the message of staying in line with the IMF is positive. However, the announced measures left little to be desired” added from PPI. “Seeing is believing?”market operators repeated.
“It is expected to have more indications about the position of the other actors that make up the government coalition,” they maintained from another Broker. “And furthermore, there is a lack of details on the implementation of several of these measures in practice to understand the magnitude of their effect on fiscal numbers,” they added.
Since Adcap Financial Group -the firm led by Javier Timerman- affirmed that Minister Batakis’ statements were in line with what was expected by the market, since she confirmed the continuity of the economic program and ratified the search for fiscal solvency.
Source: Ambito
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