As the market expected, the Fed said it will end its pandemic-era bond purchases in March, paving the way for three interest rate hikes of a quarter point in 2022, his way out of the policies he adopted at the beginning of the health crisis.
Fed funds interest rate futures on Wednesday discounted a quarter-percentage-point hike by the Federal Reserve in May next year. after the US central bank further slowed asset purchases and targeted three rate hikes in 2022.
Despite the importance of the Fed’s strategy for global risk appetite, Argentine assets continue to be more influenced by signals regarding negotiations with the IMF. “Investors interpret it as the most relevant event in the short term in view of the large maturities and ‘macro’ imbalances,” commented economist Gustavo Ber.
Argentina, which owes about 45,000 million dollars to the IMF, should disburse about 19,000 million in 2022 and next week must face a maturity of almost 1,900 million dollars in capital.
“The extended facilities program will not restore the confidence of the markets to the Government”, said the consulting firm Massot, Monteverde & Asociados and estimated that “the economic team will bet on the cards of the two harvests – the fine and the heavy -, of the issuance and of the inflationary tax, in order to finance itself during the coming year “.
Meanwhile, investors 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.
On Wall Street, meanwhile, the ADRs of Argentine companies ended up mixed, with drops led by Irsa Propiedades Comerciales (-6.2%), Despegar (-3.5%) and Edenor (-3%); and rises led by Banco Macro (+ 2.6%); BBVA Bank (+ 2.4%); and Pampa Energía (+ 1.9%).
In the fixed income segment, on the other hand, dollar bonds closed with a different trend: Bonar 2035 gained 2.3%, but Global 2046 lost 1.4%. The Bonar 2030 benchmark rose 0.5%. The Globales accumulate an average rise greater than 10% from the lows of November.
Thus, the Country Risk, prepared by the JP Morgan bank, remained stable at 1,688 basis points.
Finally, the titles in pesos that adjust for CER fell sharply, in some cases up to 3.8% (TX28) after it became known on Tuesday that the inflation in November was lower than expected (2.5%) due to the market.
Source From: Ambito
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