The Sovereign dollar bonds extend upward trend of the three previous sessions this Friday, August 30, and climbed up to 3%, this translates into a new drop in the country risk which breaks through the 1,440 basis points. The ADRs of Argentine companies listed on Wall Streetfor their part, also operate with strong increases of up to 6%.
Hard currency debt securities found a marked positive trend and are heading to close August with increases of up to 11%. In daily operations, the bonds that rise the most are the Global 2029 (+2.8%) and the Bonar 2038 (+2.4%). In this context, The country risk measured by JP Morgan threatens to break through 1,430 points.
“Argentina was strong all week. Part of it is due to the fact that the United States is expected to begin the rate cut cycle shortly and the advance of money laundering is also influencing the situation.because that pulls a lot of flow,” he told this media, Rafael Di Giorno by profession.
Adrs on Wall Street
On Wall Street, Argentine company stocks are rising sharply again driven by the good weekly performance they had and the positive inflation data which became known this morning in the United States.
YPF leads the climbs, when climbing 5.4%followed by Edenor (+5%), Macro Bank YPF (+4.9%), and Central Port (+4.1%).
The actions of Galicia Financial Group are driven after that JPMorgan significantly revised its assessment and raised the rating of the shares of ‘Underweight’ to ‘Overweight’which significantly increased its target price to u$s54.
The change from “Underweight” to “Overweight” reflects a significant improvement in the Wall Street giant’s outlook on the stock, suggesting that outperformance is now expected and that it would be advisable to increase investment in that role.
Inflation remained stable in July in the United Statesin 2.5% year-on-year (y-o-y), and prospects are growing that the Federal Reserve (Fed, central bank) cuts interest rates in mid-September.
The PCE inflationthe Fed’s preferred index, recorded an upturn in the month-to-month measurement between June and Julyrising to 0.2% compared to 0.1% between May and June. This development is in line with analysts’ expectations.
Core inflation, which excludes the most volatile prices such as food and energy, remained stable in both the 12-month measurement and the monthly comparison, respectively at 2.6% and 0.2%.
Another measure of inflation, the consumer price indexreported earlier this August that price increases in the world’s largest economy were slowing to 2.9% in the year to July. This is the lowest since March 2021. In June, the CPI was 3%.
Bag
At the local level, stocks are also replicating the positive trend of Wall Street. The leading index, S&P Mervalclimbs 3.3% to 1,715,241.440 units and is heading to close August with an increase of more than 15%.
The papers that rise the most are those of Transener (+7%), YPF (+5.7%), and Macro Bank (+5.6%). The only ones that are falling are those of Ternium (-2.9%) and Aluar (-1.8%).
Source: Ambito
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