The shares of Aluar, Central Puerto and YPF led the most important advances of the day, with increases of between 6.1% and 6.8%.
“The best coverage in the face of great uncertainty is to take positions in Argentine stocks, which are worth pennies in hard currency,” commented an operator. Other market players believe that the raises are linked to the new political order after November 14: “After the election rationality will win, especially when considering the steps of the President and the Minister of Economy in Europe”, they say.
The president, Alberto Fernández, and the Minister of Economy, Martín Guzmán, participated in the G-20 meeting that was held in Rome, Italy, where they sought support to advance negotiations with the IMF.
“The negotiation (with the Fund) is progressing with the difficulties that a negotiation entails, because there are many competing interests”, Fernández told reporters after the meeting.
Wall Street
On Wall Street, meanwhile, the Nasdaq and the S&P 500 rose, as gains in shares in energy-related firms and Tesla boosted the indices, while investors expected a major meeting of the Federal Reserve in the week. ANDhe Dow Jones Index surpassed 36,000 points for the first time in history during intraday trading.
The Federal Reserve is expected to approve plans Wednesday to cut its $ 120 billion a month bond buying program, launched to support the economy.
Investors will also focus on comments on interest rates and the recent surge in inflation. “This (meeting) is going to be relatively important,” said Paul Nolte, portfolio manager at Kingsview Investment Management. “We look forward to hearing about the downward path of bond purchases.”
The S&P 500 gained 8.31 points, or 0.2%, to 4,613.69 points, while the Nasdaq Composite gained 96.21 points, or 0.6%, to 15,594.59. The Dow Jones Industrial Average advanced 93.69 points, or 0.4%, to 35,913.25 points. All three indices reached all-time intraday highs during the session.
Meanwhile, WTI oil continues its bullish path, rising 0.5% to $ 83.95, while the 10-year bond rate remained stable at 1.56%.
Bonds and Country Risk
As in recent weeks, the performance of dollar bonds was very different, which they fell to almost 3%, with the Globals, leading the setbacks, in a difficult day for the debt of the emerging countries.
“Far from celebrating the ‘triumph’ by the mention of the surcharges in the G-20 communiqué, Argentine bonds sank and the weighted average price ended at US $ 33.27, only 4% from the post-restructuring minimum. Despite the black horizon, We believe that the Argentine Globals are beginning to show oversold signals“commented one analyst.
Thus, the Country Risk, prepared by the JP Morgan bank, it rose 16 units, to a historical maximum level since the swap with private companies, of 1,728 basis points.
This index is It restarted on September 10, 2020 in the area of 1,083 points after a millionaire sovereign debt restructuring.
Among peso bonds, those adjusting for CER extended their bullish marvha, and posted increases of up to 1.2% in the middle / short section of the curve.
For their part, the dollar linked securities operated mixed: the bond to September 2022 (Q2V2) was the highlight of the day, with an advance of 0.6%, while that of April 2022 (TV22) dropped slightly by 0.2%.
Source From: Ambito
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