The indicator that the JP.Morgan bank measures was located at 1,683 units – minimum since the end of October-, compared to a maximum level of 1,753 points recorded last week and the 1,083 registered on September 10, 2020 when the debt was restructured with a millionaire swap with private creditors.
In this frame, Global bonds in dollars showed increases of up to 2.4%, led by GD35D, and seconded by GD41D (+ 1.3%), while the Bonares recorded losses of up to 1.8% (AL41D).
Following Sunday’s results, the ruling coalition will have to seek consensus with the opposition to leave behind a prolonged economic crisis.
“A more market-friendly composition of Congress could lead to more effective checks and balances and ultimately policy regime change in 2023, but there is also the risk of more populist policies in the short term.”said Alberto Ramos, an analyst at Goldman Sachs.
Argentine stocks on Wall Street and S&P Merval
After an apparently bullish start, given the prices in the pre market, Argentine shares operated with a majority of losses this Monday on Wall Street, a day after the legislative elections, in which the ruling coalition gave up power in Congress, although it managed to narrow differences with respect to the results of the PASO.
In the first part of the day, Argentine papers posted drops of up to 2.3%, led by the BBVA bank. In addition, Loma Negra lost 1.9%; Grupo Galicia fell 1.7%; and Cresud 1.7%.
In the Buenos Aires stock market, meanwhile, the leading S&P Merval index lost 1.8% to 93,228 units, after marking an intraday historical maximum level of 97,024.42 points last week.
The local market had started the day in positive territory, with a rise just above 1%, since in the pre market the ADRs showed moderate increases, and even some decreases. But with the opening of Wall Street, at 11:30, investors opted for sales in the US, something that was transferred to the local market. “It’s a picture of what happened after the STEP. When the trend starts up, the short profit takes appear”, reasoned an operator.
For his part, Rafael Di Giorno, director of Proficio Investment, commented to Ambit that intraday volatility is the product of “Many thought that the victory of the opposition was going to be broader in the generals, but that not only did not happen, but the ruling party recovered three points in PBA, with which they are still in the ring somehow.”
After knowing the electoral results (the ruling party lost by about 8 points at the national level, 42% to almost 34%), President Alberto Fernández said that “in the first week of December we will send a bill that specifies the multi-year economic program.”
Beyond the statements, the market expects more definitions. With the ratification of Martin Guzman and the announcement of the sending of a Law that sets the goals in the economic plane, Investors will carefully await how the government will seek to negotiate to find the minimum consensus in order to stabilize the economy.
The rebound in inflation and the loss of reserves as a result of uncertainty, made a Central Bank maneuver that seems to hold out until the new income from Dollars in December. The announcement of the bill that involves the entire political arc would be a good sign taken by the markets that await concrete measures.
Source From: Ambito
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