S&P Merval accelerates profit taking and falls 14% in two days; bonds fall sharply

“It was foreseeable and it’s good that the market is rearranging after the big gains, although the level of the stock market’s decline is very strong,” said a trader.

He added that “the renewed fears of a global recession hit the markets and that also impacts locally.”

For its part, the blow Wall Street by renewed concerns about an imminent recession affecting the markets. The main US indices fell to 1.3% led by the S&P500 to 3,889.80 points; the Nasdaq Composite 0.9% to 10,814.41 points while the Dow Jones lost 0.8% to 33,019.52 units.

Fears that sharp interest rate hikes by the Federal Reserve would slow the economy were fueled by weak retail and manufacturing sales data on Wednesday, when the S&P and Dow posted their biggest daily percentage falls. in more than a month.

Thus, Argentine shares on Wall Street fell across the board to 8.1% led by Banco Superville, Edenor (7.8%), Transportadora Gas del Sur (-6.3%), Central Puerto (-5, 9%).

Bonds and country risk

In the fixed income segment, sovereign bonds in dollars collapsed to 4.5% led by Global 2035, Bonar 2029 (4%) and Bonar 2030 (3.2%). The only notable rise is from Global 2046 up to 3.1%.

“Current prices are already consistent relatively to comparable bonds and are justified by their fundamentals. The ‘speculative’ part of the rally is coming to an end, thus now shifting to an instance of carry-linked investment,” Delphos said. Investment. The announced measures are aimed at making dollar bonds rise more than those in pesos in order to decompress the alternative dollar market, explained another operator.

Thus, the risk country measured by the JP Morgan bank, it rises 36 units, to 1,872 basis points, compared to its all-time high of 2,976 units recorded last July.