The sharp declines on the New York Stock Exchange were led by Despegar shares (-4.1%); Macro Bank (-3.4%); followed by those of BBVA (-3.2%). The shares of Central Puerto (-2.8%) also fell sharply; Mercado Libre (-2.8%) and Transportadora de Gas del Sur (-2.6%).
Analysts and operators do not rule out the next announcement of new measures that seek to rearrange the accounts in a quarter with lower settlements in the agricultural sector.
Fears of a worsening of a global recession process, with higher interest rates and high inflation, deepen the risk aversion that hits the local market.
“Financial markets are more sensitive to financial conditions than the real economy, more so than in the past. And, as long as inflation and activity remain ‘hot’, the odds of a major financial shock even without recession materialize.” Delphos Investment said regarding the global situation.
Likewise, the Argentine stock market was trading lower on Monday due to selective profit-taking in highly liquid securities, at a time when global markets were improving in the hope that the US Federal Reserve would be less aggressive in its interest rate policy.
“The market remains cautious and short profit-taking is recorded in well-liquid securities“, said a trader and noted that “institutional investors remain in a waiting pattern in the face of the difficult local economic outlook.”
The leading stock index S&P Merval lost 1.1% to 137,476.86 units. In the leading panel of the Buenos Aires stock market, the papers of Banco Macro and Central Puerto noted falls of 3.4% and 2.9%, in that order.
High inflation, which reached 6.2% in September and is projected at more than 100% this year, exchange rate pressures and reduced reserves at the central bank, are issues that concern investors.
Bonds and country risk
In the fixed income market, dollar bonds operate with rises of up to 4.2%. They are headed by the Global 2038 (+4.2%). Behind are the Bonar 2041 (+3.4%) and the Bonar 2030 (+2.3%).
Meanwhile, the country risk measured by JP Morgan banks dropped 16 points or 0.6% to 2,630 units.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
