:quality(85)//cloudfront-us-east-1.images.arcpublishing.com/infobae/KLOVJKR3OYXA6TB4C4QIF2PUH4.jpg "After a negative turn on Wall Street, dollar bonds fell another 3% and country risk rose above 2,100 points")
Argentina’s financial markets operated in the red on Friday affected by a greater overall risk aversionat a time when doubts about the future of the national economy are growing in this election year.
Markets: the Argentine stock market falls and ends a series of three consecutive increases
The equity market subtracted 1.4% to 254,969 points and decoupled from the rebound on Wall Street. Global bonds lost 1.2% on average, with a country risk of 1,997 points
Overseas markets posted losses in their major indexes after two officials from the Federal Reserve The United States (Fed) said it probably should have raised the interest rate more at the start of the month and strong economic data in the North American country.
The bone dollar bonds from argentina fell an average of 2.8%, according to the reference of the Globals stock exchange – of foreign law – traded on Wall Street. He countries at risk of JP Morgan produced 73 units for Argentina, 2,123 dots Base at 6:10 p.m. These swap issues accumulate a loss in February in a range of 10% to 15% depending on their duration and legislation.
“Although the local context is not helping – due to doubts about debt sustainability, inflation, etc. – we are seeing capital outflows from (emerging) countries,” the analyst said. Salvador Vitelli. “In January, there were significant capital inflows into emerging countries (it was a record), and partly now we are seeing their exit,” he said.
Financial day: for energy payments, the BCRA made the biggest sale on the market in 15 months
“Bonds are down on poor global weather based on the latest data release, fueling expectations of the Fed raising rates further,” he said. Reuters Roberto Gerettoeconomist at Fundcorp.
“Although starting from depressed levels, Argentinian assets have risen sharply since the end of last year. And finally, in the case of sovereign bonds in dollars, it seems that there are less government buybacks. As expected, this bad weather makes the task more difficult for the REPO of the concrete”, estimated Geretto.
The Minister of Economy Sergio Massa announced on January 18 the purchase of bonds for some 1,000 million dollars to improve the debt profile, while this week a source familiar with the negotiation indicated that the Ministry of Economy had received seven offers from international banks for a repo loan of around $1 billion.
Financial Week: Dollar Bonds Fall 5% Despite Treasury Debt Buyback Announcements
Argentinian bonds suffered from falls on Wall Street and market risk aversion. The free dollar fell to $377 and the exchange rate differential was less than 100%. The BCRA sold 286 million USD on the market and the reserves fell
“Rumors are circulating that they will reverse course (with the Repo) due to lower parities, for which they would have to ask for larger (nominal) collateral, seasoned with risk aversion after the Fed move, where the market sees a more aggressive Fed in terms of rates, due to poor inflation data in the United States,” Vitelli said.
For its part, the first stock market index S&P Merval of the Buenos Aires Stock Exchange lost 3.2%, to 249,061 points, after a slightly bullish start. This reference value closed the month of January with a strong increase of 25.5% measured in pesos.
Among the stocks and ADRs of Argentine companies traded in dollars on Wall Street, heavy losses led by the banking sector prevailed. Banco Supervielle drops 9.1% and Banco Macro, 5.5%. YPF shares fell 4% to $11.41.
“Markets are starting to price in more rate hikes by the Fed in 2023 amid resurgence of inflation fears,” Portfolio Personal Inversiones said in a report. The main indicators of the new york stock exchanges reflected decreases of up to 0.6%with wider reds for tech titles.
He free dollar ended unchanged from Thursday and also remained at the same price as the previous week’s close, at $377 for sale. The free dollar falls four pesos in February, but maintains a rise of 31 pesos or 9% so far in 2023.
With the wholesale dollar gaining 36 cents to $193.19, the foreign exchange difference adjusted to 95.1%, after touching 108% at the end of January. So far in 2023, the official exchange rate is also up 9%, from $177.16 at the end of 2022.
The Central Bank ended the last session of the week with sales for $49 million to meet the needs of the wholesale market, with activity of 276.1 MUSD in the cash segment (place). In February, the seller’s balance reached $918 million, which has grown to $1,110 million year-to-date.
“The long holidays next week had no impact on the volume traded, which remained at the daily average for the month,” he commented. Gustave Quintanaagent of PR Exchange Brokers.
The BCRA on Thursday maintained its benchmark interest rate at 75% per annum to accompany positive market returns and after learning of January inflation data which reached 6%.
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