Markets: Argentine stocks and bonds fall

Operators work on the premises of the Buenos Aires Stock Exchange.

Argentina’s stocks and bonds are trading negative this Tuesday, influenced by declines on Wall Street, which is impacted by unfavorable corporate balance sheets.

At 1:30 p.m., the stock index S&P Merval of the Buenos Aires Stock Exchange subtracts 0.2%, to 119,300 pointsafter having crossed in the morning the nominal historical maximum level of 121,000 points.

The Merval came from basting four consecutive sessions on the rise. The panel of leading stocks rose 5% on Monday and accumulated a 9.2% improvement last week.

Likewise, in July it accumulates a gain in pesos of 34%, which was coupled with the rise in the dollar “counted with liquid”, due to hedging due to recent economic tensions that led to exchange rate tensions amid rising inflation and political ups and downs.

“The main index is technically in an overbought zone, given that the relative strength indicator (RSI) is above 80 points and should already reverse the trend,” he said. Research for merchants. He added that for his part, “the MACD trend oscillator is above its moving average and with a positive slope, although in a very high area.”

Dollar bonds fall again and test new minimum values. The titles Global in dollars with foreign law fall 1.5% on average, with some issues below USD 18, as in the case of GD35 and GD46. The risk country JP Morgan scores 2,903 points essential.

According to estimates of Personal Portfolio Investments“the Argentine globals are on track to close their worst month since the restructuring”, with reds of the order of 20 percent.

The managing director of the International Monetary Fund (IMF), Kristalina Georgieva, said that the organization values ​​the “initial efforts” of the new Minister of Economy of Argentina, Silvina Batakis, in strengthening the fiscal sustainability of the country.

In an atypical month of July, the Buenos Aires Stock Exchange coupled with the escalation of the dollar “counted on liquid” to rise 34%

“There has been little news since Batakis’ trip to Washington. The minister met with the director of the IMF who offered her support through social networks. Georgieva highlighted the minister’s initial effort to achieve fiscal sustainability and assured that they agreed on the importance of carrying out a decisive program to face the country’s challenges. Nevertheless, The incredulous market seeks concrete measures from the Government rather than signals”, they limited from Portfolio Personal Investments.

In the external context, eyes remained on the monetary policy decision that the United States Federal Reserve (Fed) will take this week.

“Traders brace for a bout of mega-cap tech earnings and economic data this week, as well as the outcome of the Federal Reserve meeting, which will help Wall Street steer its expectations for the rest of the year,” provided by the experts at Research for Traders.


Strong pessimism about Argentina among the Wall Street executives who will meet today with Batakis in Washington
Due to the lack of dollars for supplies, companies fear a massive commercial default with their foreign suppliers
Why the country risk of Argentina is close to 3,000 points and rises much more than in the rest of the region
The market entered “pause mode” and gave the Government a day of truce
Following his meeting with the IMF and Treasury, Batakis will seek to explain his plan to Wall Street investors and executives.

Leave a Comment