In the United States, all three major New York indices closed lower as investors await the latest inflation data that could prompt the Federal Reserve to redouble its efforts to curb inflation. Traders see a 68.5% chance the Fed will raise rates 75 basis points in September, its third big hike in a row.
“It was a negative session on Wall Street, which weighed on domestic assets as traders remain vigilant for signs of a new economic drive”he assured Scope, Gustavo Ber. At the local level, the Treasury will seek to renew debt maturities for some $2.4 trillion, in what will be the first key test of Economy Minister Sergio Massa before the markets.
The titles that are sought to be renewed expire in August, September and October. The Treasury offers three dual bonds maturing between June and September 2023, tied to the maximum variation between inflation (+2%) or the official devaluationso the investor will receive the best result between both coverage options in pesos. The minister anticipated last week that he had already obtained a commitment of 60% participation.
At the same time, the decrease in federal reserves is worrying. The Central Bank (BCRA) sold US$64 million to the market on Tuesday, with a demand for energy that approached US$100 million. In this way, the monetary authority sold some US$1,194 million in the last 10 days in a row. As officially reported, the demand for energy imports is around US$600 million. In this context, Miguel Pesce said that it is expected to drop from US$2.2 billion in July to US$1.8 billion in August.
Stocks and ADRs
Argentine companies listed on Wall Street fell to 9.8% at the hands of Edenor, while Cresud and Banco Macro also had heavy losses with 5.9%. Corporación América (+0.9%), and Tenaris (+0.8%) led the few rises of the day. For its part, The leading S&P Merval stock index fell 1.6% to 121,920.79 units, after advancing 2.4% the day before and against the strong jump of 38.5% in July.
In the leading panel, the main declines were for Transportadora de Gas del Norte (-4.8%), Transener (-4.7%), and Cresud (-4.6%). “The drop is in line with the losses of the main bank and energy ADRs due to accumulated profit taking”noted an operator.
Source: Ambito
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