The dollar bonds bounced strongly this Wednesday, April 17, after a week-long bearish streak, as investors remain expectant to the global development of the markets following Iran’s weekend attacks on Israel and waiting for local political signals that support the path proposed by the ruling party.
In the fixed income segment, dollar securities rebound strongly and they climb up to 3% led by the Global 2041; Bonar 2041 (+1.9%), and the Global 2038 (+1.1%).
This way, The country risk, measured by JPMorgan, fell 4.4% to 1,320 points.
Recent improvements in domestic macroeconomic indicators and expectations that a controversial megadecree that seeks to free the economy promoted by the ruling party will be approved in Congress, encourage the taking of positions in assets.
“Although the positive trend spreads in emerging markets, Creole (Argentine) bonds grow more markedly”said Portfolio Personal Investments (PPI), noting that “In this sense, the change in mood is undoubtedly accompanied by external factors, but we believe that there are local events that also have a positive influence.”
Foreign markets remained expectant of U.S. interest rates remaining high for longer, boosting the dollar and pushing Treasury yields to five-month highs.
“The most relevant support for the Merval continues to be at the 55-day exponential moving average at 1,125,000 points, followed by the whole number zone at 1,000,000 points,” estimated Alexander Londoño of ActivTraders.
The government of Javier Milei aims to eliminate the exchange rate and implement a system of currency competition, among other economic measures tied to fiscal control and shrinking of the State through the implementation of the package of measures that it seeks to approve in Congress.
S&P Merval and ADRs
The porteño bag operated in low this Wednesday, April 17. After a bullish start, the S&P Merval index fell 0.9%, to 1,192,425 unitsafter gaining 0.5% in the previous session amid notorious volatility due to accumulated profit taking.
Between the Actions that are lower Macro Bank (-2.4%), Supervielle Group(-1.4%), and YPF (-1.8%). For their part, the biggest climbs of the day are for Mirgor (+2.5%); IRSA (+1.3%) and Grupo Financiero Valores (+1.1%).
On Wall Street, for its part, the papers of Argentine companies operate with declines of up to almost 5%. The assets of Edenor They lead the falls, with a decrease of 4.5%. They are followed by the actions of Telecom (-4%); and the BBVA bank (-3.9%). They only operate in positive territory Bunge (+0.9%); Ternium (+0.4%); Tenaris (+0.3%); and Adecoagro (+0.1%);
“Domestic assets seem even more inclined towards a healthy and orderly correction, which after the impressive (bullish) rally of recent months could contribute to consolidating the important levels reached and purge those trading hands,” said economist Gustavo Ber.
It is expected that the Congress try in the next few days a broad decree (DNU) that deregulates the economy, which was rejected by senators and now It must be debated in the Chamber of Deputies to define its validity.
Source: Ambito
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