Locally, the papers that fell the most were Pampa Energía (4.7%), Edenor (4.1%) and Banco Macro (3.1%); while the most important increases were registered by Richmond (2.4%), BYMA (1.8%) and Loma Negra (0.85%)
Federal Reserve officials said last month that the US labor market was “very tight” and it may need the central bank to not only raise interest rates earlier than expected but also reduce its asset holdings to control high inflation, the minutes of their last meeting showed on Wednesday.
“Participants generally noted … that increasing the federal funds rate earlier or at a faster rate than participants had previously anticipated may be justified,” minutes from the December 14-15 meeting showed.
What’s more, Investors remained expectant at the presentation that the country’s Minister of Economy, Martín Guzmán, on the details of what has been negotiated so far with the International Monetary Fund (IMF).
The head of the economic portfolio said: “We are negotiating with the IMF to be able to have international support for the Government’s economic policy scheme to be able to carry it out without paying the debts we have with it; that it give us the financing to be able to pay it what it lent us. in 2018 and 2019 “.
“The agreement with the IMF will not solve all of Argentina’s external debt problems; there is a lot of work to be done; the problem is so big that it will take years to solve it,” said Guzmán at the Museo del Bicentenario de Casa de Gobierno. to the provincial governors to inform them about the negotiations with the International Monetary Fund (IMF).
It is worth remembering that in the first quarter of this year the debt with the institution amounted to US $ 4,000 million, when the net reserves of the BCRA barely exceeded US $ 2,000 million.
Another point that keeps the local economy on alert are the worrying numbers of coronavirus infections because, according to official sources, it brings inconveniences to work activity and, therefore, can negatively impact on a greater recovery .
Bonds and Country Risk
The OTC sovereign debt fell an average 0.5%, before a Country Risk of the JP Morgan bank that rose 24 units, up to 1,754 basis points.
“Regarding sovereign bonds in dollars, the proposal to the IMF could be key for the market to revalue with a higher margin the possibilities of long-term payment of these public securities,” highlighted specialist Javier Rava.
And he added: “In principle, the expectations of an agreement will be well received by investors and the enthusiasm could cause the market to propose, perhaps, a better capital appreciation.”
Source From: Ambito
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