Markets: Argentine stocks and bonds fell, in tune with Wall Street

Stocks go down after Jerome Powell’s speech.

Argentina’s bonds and shares cut positions this Friday, along with the trend of international markets, with a downward trend after the presentation of the president of the US Federal Reserve at the meeting of central bank presidents in Jackson Hole , in the US state of Wyoming.

The S&P Merval of the Buenos Aires Stock Exchange fell 0.9% to 141,460 points. The panel of leading shares set a historical record in pesos on Thursday above 142,000 points, accumulating an advance of 9 percent in the previous four wheels.

“Technically, the main domestic index remains at high overbought values, but some indicators with divergences are already observed, so we expect a logical short-term correction to take place,” the experts at Research for merchants.

The dollar bonds subtracted 2.5% on average, according to the reference of the Globals of the exchange, after a sustained rebound with the expectation placed on the arrival of gabriel rubinstein Sergio Massa’s team, and waiting for the measures recently taken to begin to have an effect on the domestic economy.

The risk country of JP Morgan increased 80 units to Argentina, the 2,400 points basics at 5:30 p.m., after approaching 2,300 points on Thursday for the first time in two months.

The Minister of Economy, Serge Massawill meet in September with the managing director of the IMF, Kristalina Georgievaat the end of his US tour. Massa will travel the week of September 6 to visit Washington and Houston. The central axis of the trip will be the attraction of investments in sectors of the real economy, with the purpose of generating jobs and fiscal income.

Among the investment companies with which it will hold working meetings are the oil companies Chevron, Exxon, Shell and Total, the automobile company Volkswagen, the mining companies Rio Tinto and Livent (lithium) and the Amazon group, among others. In particular, in Washington the minister will meet with the president’s coordinator Joe Biden for Infrastructure, Investment and Energy, amos hochstein.

The markets were for now on the sidelines of the political quagmire that sparked around Cristina Kirchner and the sentence of 12 years in prison formulated by the prosecutor Diego Luciani in the trial for the cause known as National Roads. On the contrary, the rises in both stocks and bonds continue firm, which are already leaving behind the sharp falls they suffered during the crisis in June and July.

Since the “rally” of the local market began, there has been talk of the “Massa effect”, that is, the better climate generated by the appointment of the former head of the Chamber of Deputies as Minister of Economy. Of course the “timing” of that election coincided with the strong improvement that Wall Street also had almost simultaneouslypromoting the recovery of assets in emerging markets and in particular in Latin America. At the same time, the different financial dollars behaved with greater stability, although they remain at high levels just below 300 pesos.

Overseas, US stocks traded with downright low on wall street on Friday, as world stocks headed for a small drop for the week, after the words of the Federal Reserve chairman, Jerome Powellon interest rate hikes.

Investors scaled back expectations that the US Fed may veer to a slower pace of rate hikes as US inflation remains at 8.5% a year, well above the US central bank’s 2% target. .

“The Fed and other central banks have fallen asleep on the inflation thing and are now desperate to regain credibility,” he told Reuters luca paoliniof Pictet Asset Management. “Economists are clearly asking the Fed not to blink and, if anything, to speed up the pace of tightening,” he added.

The Wall Street indicators lost up to 3.9%, bias led by technology papers. In commodities, crude oil prices rose just under 0.3% on signs of improving fuel demand, although gains were capped pending Powell’s speech. Spot gold was down 1.2% at $1,750 an ounce.

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