“Bonds and shares are motivated by their own reasons, investors already discount that inflation is very high and that the Government is fighting to lower it. The country risk loses ground and the ADRs (Argentines) in New York affect the stock market record (in Buenos Aires)”explained analyst Marcelo Rojas.
The CPI will be released at 4:00 p.m. and later the BCRA board is expected to validate the monetary policy with its reference rate unchanged at 75% per year (107% effective), according to sources consulted by Reuters.
In this framework, the S&P Merval rises 0.7% to 226,284.09 points, after marking its new intraday all-time high of 228,321.99 units a moment after the negotiations began. Financial papers continue as stars in the bullish rally, at the rate of Argentine ADRs on Wall Street, the daily increase of 1.91% in Grupo Financiero Galicia stands out.
For their part, Argentine papers on Wall Street are trading with increases of up to 6.2% led by Mercado Libre, followed by YPF and Transportadora Gas del Sur (3.1%). In this round, YPF stands out by exceeding US$10 for the first time on the New York Stock Exchange. In 6 months, its price more than tripled: it accumulates an increase of 235%.
Global markets show a fall in the dollar after the spread of a drop in inflation in the United States in December, for the first time in more than two years, strengthening the possibility that the Federal Reserve will further reduce its pace of rate hikes.
This data also endorsed Argentine assets, in line with what was evidenced in emerging economies, despite a certain selectivity over sovereign debt papers typical of the characteristics of each amortization.
Bonds and country risk
In the fixed income segment, dollar bonds fell 4% led by Global 2038, followed by Global 2035 (-2.3%) and Bonar 2038 (-1.2%). On the contrary, the rises of Global 2041 (3.8%) and Bonar 2041 (1.6%) stand out. Thus, the risk country Argentine raises 4 units to 2,010 basis points.
Source: Ambito
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