This day the price of industrial metals rose sharply. According to the operators, “hopes for a slower pace of interest rate hikes in the United States boosted world stock markets and weakened the dollar, making greenback-priced metals cheaper for buyers with other currencies.” “The market is enjoying the tailwind of dollar weakness”said Ole Hansen, an analyst at Saxo Bank.
As for the Argentine companies on Wall Street, they ended the day mixed. They led the climbs Tenaris (+3.7%), Transportadora Gas del Sur (+3.3%), Central Puerto (+2.2%), and YPF (+1.8%). Global markets improved on hopes that the US Federal Reserve will be less aggressive in its interest rate policy. At the same time, oil prices rose sharply on good demand datadespite fears of an economic slowdown.
Bonds and country risk
Unlike stocks, dollar bonds fell force and gave up to almost 5%, after a week of firm advances. The main casualties were noted Bonar 2029 (-4.7%); Global 2029 (-4.2%) and Global 2038 (-2.4%). “There was profit-taking after recent gains fueled by low stocks and attractive returns, at a time when risk rating agency Fitch lowered the country’s long-term rating to “CCC-operators said.
Therefore, the country risk measured by the JP Morgan bank rose 2.5% to 2,564 points towards the closing of the local market.
“The bonds had already been going down before, because they rose almost 15% in 4 days without changing any underlying macroeconomic fundamentals”said Roberto Geretto of Fundcorp and estimated that “The worst rating doesn’t help, but it doesn’t make a material difference.”
For her part, Ayelen Romero, from Rava Bursátil, pointed out that “it is important to remember that sovereign bonds suffered a big drop since they were listed and are currently at accumulation pricesan important point for bondholders who suffered the fall or are simply looking to take some risk.”
Source: Ambito
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