Against this background, the S&P Merval stock index climbed 5.3%, to a provisional closing of 126,361.98 pointsafter marking a historic intrahour ceiling in pesos of 126,670.33 units. The Merval accumulates a rise of 18.1% in five sessions.
Major US indices rose as much as 4%, led by the Nasdaq, after the Federal Reserve raised its benchmark interest rate by three-quarters of a percentage point and comments from Fed Chairman Jerome Powell reassured investors.
Wednesday’s rate hike was widely expected by investors. The news it added to upbeat quarterly reports from Microsoft and Alphabet, which had given investors confidence about earnings season.
Powell told a news conference after the Fed’s announcement that he did not believe that the US economy is currently in a recession, but that it was slowing down. He also said that the lack of clear visibility on the future of the economy means that the US central bank can provide reliable guidance on the direction of its monetary policy only on a basis of “meeting by meeting”.
“Powell’s willingness to let the data guide them going forward was something the market liked. He didn’t automatically say we needed another rate hike.” said Peter Tuz, president of Chase Investment Counsel. “It was a reassuring statement that comes after a day that saw some earnings and revenue that were better than expected, although expectations were very subdued,” he added.
The S&P 500 gained 2.6% to 4,023.32, while the Nasdaq rose 4% to 12,027.86 and the Dow Jones Industrial Average rose 1.4% to 32,196.00.
Bonds and country risk
In the fixed income segment, the Sovereign bonds in dollars they also rose across the board, and in some cases climbed to almost 9%, after recent declines, at a time when they are trading at less than 20% of their value and with rates above 40% in dollars.
The most outstanding advances of the day were recorded by the Bonar 2038 (+8.7%); the Bonar 2041 (+8.6%); Bonar 2030 (+7.6%), and Global 2030 (+7%).
In this frame, the Argentine country risk measured by JPMorgan collapsed 3.4% to 2,736 points, against a maximum level of 2,976 units recorded this week.
Source: Ambito
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