Once the statement was known, there was a partial cut in share losses, but quickly, together with the bonds, the declines that had prevailed since the first hour of the day resumed.
Thus, the S&P Merval index of Bolsas y Mercados Argentinos (BYMA) fell 1.3%, to 85,441.38 points, unable to maintain its laterally bullish opening and after losing 3% on Thursday. Before the IMF statements, the leading panel showed a decrease of 0.8%.
Thus, closed the week with a decrease of 1.1%. The most salient falls of the day were led Cablevisión (-3.8%), and banks, which yielded up to 2.9%.
On Wall Street, on the other hand, the ADRs of Argentine companies operated with a majority of drops, led by Edenor (-6.7%).
“There was a general understanding of the need to gradually and sustainably improve public finances, while giving rise to much-needed investments in infrastructure, technology and targeted social spending,” the IMF noted.
“Addressing the persistent and high inflation requires a multiple approach that implies a reduction in the monetary financing of the fiscal deficit, an adequate monetary policy with positive real interest rates and a coordination of prices and wages”, highlighted the multilateral organization.
The IMF statements were well received by the Government. “We are working along the same lines. They recognize a number of advances in the economic reactivation in Argentina, the fiscal improvement that exists at the moment”, Government spokeswoman Gabriela Cerruti told reporters. The spokeswoman considered the communication from the IMF “very good, very positive.”
Analysts agree that The chances of an understanding grow despite the differences between the parties on how to finance a fiscal consolidation, with the illusion of an agreement announcement before the end of the year.
Amid annual inflation slightly above 50%, according to private projections, The Government will defend its 2022 budget in Congress on Monday, while awaiting the entry of a multi-year plan that includes the bases of understanding with the IMF.
In the world, this Friday the US consumer price index was released, which rose to 6.8% year-on-year in November, the highest level in 39 years. This is an important piece of information to reveal the monetary policy that the Federal Reserve could develop, which will have an impact on a global level.
In the fixed income segment, dollar-nominated sovereign bonds took a breather after a strong bullish rally and lost as much as 4.1% (Global 2035). Prior to the IMF statement, the drops reached up to 2.1%.
In any case, throughout the week, hard currency securities accumulated increases of 3.6% on average.
Faced with this, the Risk country, as measured by JP.Morgan bank, snapped a streak of seven consecutive casualties and it bounced 1.8% to 1,714 basis points, although it had two consecutive weeks with losses.
Source From: Ambito
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