The leading panel operates “in a global environment ‘risk off’ awaiting today’s statement from the Fed and the possibility of a tightening of its monetary policies. Volatility persists”added.
Investors also await the presentation of a delayed ‘multi-year’ economic plan, amid speculation of a potential rate hike by the Central Bank (BCRA) after knowing the inflation in November.
“The logic – if you can talk about such a thing in the current situation – would indicate that some type of agreement will be signed by the IMF and our country; in order to qualify it, it is most likely that it will be light (and this) should be homologated before from the end of March, although there is always the possibility of extending the maturity dates without the creditors shouting in the sky “, estimated the consulting firm Massot, Monteverde & Asociados.
He added that “precisely because it is light, Argentina’s structural problems will remain the same (and) the extended facilities program will not restore the confidence of the markets to the government.”
On Tuesday, the inflation data for November was released, lower than expected, around 2.5%, which had a negative impact on the CER Bonds. The CPI accumulated an increase of 45.4% between January and November, and of 51.2% in the last 12 months, according to the National Institute of Statistics and Censuses (INDEC).
In tune, the ADRs of Argentine companies remain in the majority of drops, among which stand out Irsa Propiedades Comerciales (-5.3%), Ternium SA (-4.8%), Despegar (-2.8%) and Globant SA (-2.6%). The increases belong to Pampa Energía SA (+ 1.6%), Grupo Financiero Galicia (0.2%) and Banco Macro (0.1%).
Separately, Wall Street falls before the Federal Reserve announces its monetary policy decision later in the day, as the latest inflation data bolstered bets on a more rapid reduction in monetary stimulus from the central bank.
The US central bank is expected at its meeting to signal a quicker end to its bond buying campaign and an earlier start to interest rate hikes. The statement will be followed by a press conference from Fed chief Jerome Powell.
In the fixed income segment, sovereign bonds denominated in dollars operate with a majority of increases up to 1.4% led by Bonar 2035, followed by Bonares 2038 and 2030 (0.5% and 0.2% respectively). Global 2030 rises 0.1%.
The Country Risk prepared by the JP Morgan bank contracted 0.18%, reaching 1,694 basis points.
Source From: Ambito
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