In the Buenos Aires stock market, for its part, the leading index S&P Merval de Bolsas y Mercados Argentinos (BYMA) yielded 0.9%, to 91,258.15 units , after increasing 7.9% in the previous four rounds and scoring its all-time high of 92,124.21 points on Wednesday.
The retraction of the leading panel was in line with other regional markets, following the position of the US Federal Reserve (Fed) to start cutting its monthly bond purchases in November with plans to finish them in 2022. Beyond this, the The Fed maintained its view that high inflation will be “transitory” and will probably not require a rapid rise in interest rates.
Meanwhile, the note of the day was given the blue dollar, which touched $ 200 for the first time, although towards the end of the day it erased the rise that showed almost the entire wheel, and closed at $ 199, in the midst of a constant demand for foreign exchange to hedge positions on mid-term election days.
Once few transactions were made around $ 200, the government’s “friendly hands” appeared, generating liquidity and offering dollars in this market without interference from the Central Bank (BCRA), with the aim of stopping the escalation. Therefore, at the close there were stabilized prices, they commented at the tables.
“For fear that politics will not be able to solve the economic problems again, with pockets hit in their purchasing power plus growing poverty, it is normal that the peso is worth less and less”, argued a banking analyst. The exchange rate gap between the official and marginal exchange rates is now around 100%.
The Government played down its importance, although the market movement was not unknown. The ‘blue’ “is a market that is managed with its own rules (…) it reflects more political than economic expectations”, said the spokeswoman for the presidency Gabriela Cerruti in a press conference from the Government House.
Bonds and Country Risk
The JP Morgan bank country risk It rose 0.5% this Wednesday to 1,746 basis points, a new maximum since September 10, 2020, after the millionaire sovereign debt restructuring.
Within this framework, dollar-nominated sovereign bonds operated unevenly, with declines led by the Globals.
Source From: Ambito
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