The global market collapse impacts Argentine assets: shares fall up to 6% and country risk reaches 1,700 points

The Argentine assets fall sharply On Monday, August 5, in the midst of the global panic that began in Japan, the US employment report confirmed this and dragged financial instruments into a global crash. And Argentina, of course, is not exempt from this negative trend. Stocks, bonds and the dollar are thus taking the hit and reacting to these global movements, which are the result of a rate adjustment in Japan and fears of a recession in the US.

ADRs, which had fallen by as much as 11% at the start of trading, were down by as much as 6%, while the Dollar bonds fell by up to 3.7%, pushing the country risk level above 1,700 points for the first time since February.

While, Financial dollars rose to almost $20, and the gap remains above 40%. The blue dollarfor its part, was trading stable, after initially exceeding $1,400.

Regarding the global stock market situation, the presidential spokesman, Manuel Adorni, He pointed out in this regard: “We always look at what happens in the world, no, it is not strange, especially in an Argentina that wants to be more incorporated into the modern world. In any case We are clear about what we are doing and none of that is going to affect our path.”

He added: “We are looking closely at events that have not happened for a long time, such as the fall of the Japanese stock market, which has not happened since 1987. We are clear about where Argentina’s solution lies and where our peace of mind lies, which is basically in the public accounts and in showing every day that inflation is falling. We want to take Argentina down a serious path and be a normal country.”

Sovereign bonds in dollars

Sovereign bonds fall sharply: those that lose the most are Global 2031 (GD41), he Global 2035 (GD35), and Bonar 2035 (AL35), which lost 3.7%.

Argentine stocks listed on Wall Street

The same thing happens with ADRs, which are falling sharply. Argentine stocks on Wall Street have plummeted by up to 6% amid global panic. The biggest decliners were Edenor, followed by Cresud (-3.8%) and Pampa Energía (-3.5%).

S&P Merval

The stock market index of the Buenos Aires market falls by more than 2%while measured in dollars it fell by 4%. The shares leading the losses are Holcim (-5%), Grupo Valores (-4.5%) and Sociedad Comercial del Plata (-4.4%).

Impact on the blue dollar

He Blue dollar rises $5 to $1,400 for sale, according to a survey by Ámbito in the caves of the city. Amid global panic, the exchange rate is trading flat in early trading.

In a highly volatile session, the parallel currency has risen for the third time in a row. In this context, the gap with the official exchange rate is close to 50%.

It is worth remembering that July was a very volatile month for the blue dollar, as it started by rising $135 (+9.7%) in the first two weeks, although it later cut its price and closed with a slight variation of $5 (0.4%), as a reaction to the official announcement of the start of intervention in the financial dollar market by the BCRA.

Financial dollars are also under pressure

He MEP dollar and CCL rise more than $20 to stand at $1,355 and $1,346respectively. Thus, in the last four days they have accumulated increases of more than $80.

The gap with the official exchange rate is close to 45%, its highest level since the government announced that the Central Bank (BCRA) was going to start intervening in the stock market, almost a month ago.