The largest declines in hard currency securities were suffered by the Overall 2035 (-4.8%); the Global 2030 (-3.4%), and the Bonar 2041 (-3.1%). They accumulate a decrease of more than 10% in the last eight sessions.
A) Yes, the Argentine country risk measured by the JP. Morgan bank rose 4.3% (114 basic points), to 2,754 units, a new maximum in two months.
“Under said adverse background external context is that operators are still waiting for the next exchange rate measures, given the imminent end of the ‘soybean dollar’ that contributed dollars but also added pesos”said an operator
In a climate of internal and external uncertainty, analysts speculate that the Government is working on the implementation of a “Stabilization Plan” for the economy, as Ámbito anticipated.
“Multiple versions circulate about possible new stages of the economic plan. However, if it is truly intended to bring inflation to a significantly lower level, it will be necessary to take more forceful measures to achieve control of the fiscal accounts and, particularly of the quasi-fiscal deficit, along with substantive changes to the exchange rate regime,” said Gustavo Reyes of the Mediterranean Foundation.
The Argentine Vice Minister of Economy Gabriel Rubinstein He wrote on his Twitter account that “Until we achieve currency unification, there will be some disorder and higher than normal business margins. But unifying the foreign exchange market, without a robust primary fiscal surplus, and almost without reserves, looks too risky.”
Encouraged by a special exchange rate of 200 pesos for soybean exporters, andhe BCRA bought some 370 million dollars from the market this Thursday and accumulated so far this month acquisitions for some 4,800 million dollars for its reserves.
S&P Merval and ADRs held up despite global gloom
In this context, the S&P Merval finished balanced at a provisional level of 138,004.48 points, after operating throughout the day in negative territory, against a gain of 1.9% on Wednesday, when it cut an adverse streak of 9.4% in the previous three business rounds.
Meanwhile, Argentine stocks operating in wall street closed mixed, with losses led by Despegar (-5.2%), Globant (-5.1%) and Mercado Libre (-4.1%). Instead, the rises were led by IRSA (+3.7%); Central Port (+1.4%); and BBVA bank (+1.2%).
“Volatility is once again the great protagonist of the wheel (…) The greater aversion to risk at a global level pushes the dollar”reported from Portfolio Personal Investments (PPI).
For its part, Wall Street closed sharply lower on concerns that the Federal Reserve’s aggressive fight against inflation could hurt the US economy. and as investors fretted over falling global currency and debt markets.
The S&P 500 lost 77.83 points, or 2.1%, to 3,641.21, while the Nasdaq fell 313.25 points, or 2.8%, to 10,738.39. The Dow Jones Industrial Average fell 455.19 points, or 1.5%, to 29,228.55.
The Nasdaq sank to near its 2022 low in mid-June as shares of tech heavyweights like Tesla, Apple and Nvidia fell.
The S&P 500 hit lows last seen in November 2020. Down more than 8% so far this month, the benchmark is headed for its worst September since 2008.
The sale of US Treasury bonds resumed as Fed officials gave no indication that the US central bank will ease or change its plans to aggressively raise interest rates to reduce inflation.
“The fear in the market is that the Fed will push us into a very deep recession, which will cause earnings to contract, and that’s why the market is falling,” said Phil Blancato, director of Ladenburg Thalmann Asset Management in New York.
Yields on many Treasuries, which are considered virtually risk-free if held to maturity, now dwarf the S&P 500’s dividend yield, which recently hovered around 1.8%, according to Refinitiv Datastream.
Source: Ambito
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