Cedears, an instrument widely used to hedge against devaluations, but they have been suffering sharp declines after the elections. What reading does the market make.
The bleeding continues: Cedears fell up to 8% and the trading volume fell sharply
The Cedears accumulate strong losses this week thanks to the abrupt decline of the Cash with Liquidation dollar. Besides had marked a record volume in the run-up to the elections since these instruments functioned as “hedge” assets, but The amount traded returned to levels at the end of September.
“The decline in financial dollars accompanied the decline in the market’s assets in pesos, such as Cedears that ended with losses while their foreign assets were positive, this is due to the decrease in cash with liquidation of around 5.1% ($887.88). In relation to the MEP, it ended with a decrease of 6.2% ($843.82)”, he explained Priscila Brunoanalyst rava.
Thus, the greatest decreases were for Petrobras (-7.6%), Disneyand (-6.7%) and Apple (-6.3%). As for the Cedears ETFthose who fell the most were DAY which replicates the Dow Jones index (+6.5%), the QQQ which follows the Nasdaq (-6%), and the XLE which brings together leading companies in the energy sector (-5.9%).
For its part, Stocks in New York rose as investors focused on a new set of earnings reports from big companieswith larger profits than expected, and traders monitored the latest movements in Treasury Bond yields.
Some economists projected that if Big Tech companies come out with their numbers and offer solid guidance for their future earnings, then the stock market recover strongly until the end of the year.
Coca Cola reported earnings and revenue that beat estimates, sending shares up 2.9%. Spotify rose 10% after the audio streaming giant posted third-quarter results that beat expectations.
General Motors fell 2.3% after the company withdrew its full-year outlook amid rising costs due to mechanics union strikes. The automaker posted better-than-expected third-quarter results.
Source: Ambito
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