Given the sharp drop in exchange rates, Argentine Certificates of Deposit are showing sharp declines.
Cedears sink up to 12% due to the collapse of the financial dollar: which are the most affected
The Cedears (Argentine Certificates of Deposit) are quoted with widespread declines of up to 12%among the most traded papers, because Stock exchange rates fall by more than 7%at a time when the National Government announced that will intervene in the markets to reduce the gap with the wholesaler.
It should be noted that Any movement in the CCL dollar will have a direct impact on the Cedears priceThis means that if the dollar falls by a certain percentage and the stock in the foreign market does not change, the price of the Cedears should fall in pesos.
On this day, the dollar “counted with liquid” (CCL) It sinks 7.7% to reach the $1,319.09. This happens because the Government announced over the weekend that The monetary authority will begin to use foreign currencies that buys in the official market for intervene in the stock market.
Thus, among the Cedears ETF, the main losses are for the EEM (-9%), the EWZ (-8%), the DAY (-7.1%). As for companies, NIO loses 13.1%, followed by Bidu (-12.6%), Alibaba (-9.9%), Harmony Gold (-9.6%), Amazon (-9.1%).
Wall Street: good news for Cedears, contrary to CCL
He Dow Jones hit a record high on Monday on Wall Street, thanks to a higher probability that presidential candidate Donald Trump will win a second term after surviving an assassination attempt, while hopes for an interest rate cut also supported sentiment.
Under Trump, markets are expecting a hardline trade policy and looser regulations on issues ranging from climate change to cryptocurrencies.
The index S&P 500 gained 0.6% to 5,648.41 units, while the Nasdaq rose 0.9% to 18,560.29 units. Meanwhile, the Industrial Average Dow Jones added 189.84 points, or 0.5%, to 40,190.74 units.
Source: Ambito
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