:quality(85)//cloudfront-us-east-1.images.arcpublishing.com/infobae/7GXLBSXCLCVTBRCL6PM4XZ7J3I.jpg "Markets: Argentinian stocks and bonds fall in New York on day of nervousness over US rate future 1")
In a financial day without operations in the local market due to the carnival holidays, Argentine stocks listed in New York started with the majority of results in the red, among which Globant (-3.8%) stands out; Edenor (-2.7%); Irsa (-2.3%) and Telecom Argentina (-1.1%). Conversely, the securities which recorded increases are Banco Supervielle (2.2%); BBVA (1.9%) and Grupo Financiero Galicia (1.2%).
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In the bond segment, dollar bonds recorded declines. Among them, the GD29 bond (-2.28%); GD30 (-1.72%); GD35 (-2.25%); GD38 (-1.60%); and GD41 (-1.81%). Country risk, the index measured by JP Morgan, remained above 2,100 basis points, the same level reached last week.
After a public holiday in the United States, New York markets are operating on Tuesday with a negative trend and its main index, the Dow Jones Industrials, fell 1.31% to 33,383.13 points, pending Federal Reserve minutes to show the course. interest rates.
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For their part, European stocks also fell during the day and bond yields rose after the rebound in corporate activity in the eurozone this month, fueling expectations that the European Central Bank would maintain its aggressive stance, as inflation remains high.
The yield on German 2-year bonds (DE2YT=RR), which is the most sensitive to interest rate expectations, hit a 14-year high of 2.95%. It then rose 3 basis points to 2.923%.
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Local newspapers like the GD35D fell 3.55%, but the Global 2030 (GD30D), with which the Economy is seeking to carry out the operation by pledging them, lost 2.8%
“The data failed to lift the euro, which was down 0.2% to $1,067, on track to end February lower and snap four straight months of gains. So far in February, it has lost almost 2% against the US dollar,” Reuters reported.
The yield on 10-year US Treasury bonds rose 2.3 basis points to 3.852%, after hitting a three-month high last Friday. The two-year US Treasury yield, which tends to track interest rate expectations, rose 3.5 basis points to 4.658%.
“Wall Street starts the week on a still negative tone amid geopolitical tensions, despite which ADRs during the local holidays are mixed and selective while dollar bonds dig the most weakness. This is how major ADRs show a disparate behavior so far, with the strongest bank papers against the weakest energy papers, within the framework of an intermittent correction process encouraged in particular by the external climate,” the specialist said. Gustave Ber.
“Bonds, for their part, are aggravating the weakness of recent times with average declines of 1% in their dollar prices, which are also influenced by greater risk aversion towards emerging markets, beyond domestic factors, they also add uncertainty, and therefore country risk is already above 2,100 basis points,” he added.
Bitcoin, the world’s most widely used cryptocurrency, racks up 50% growth in value so far in 2023, rebounding from the crash due to a series of platform bankruptcies and mistrust in the world. regard to these assets, as the monetary adjustment of the Federal Reserve (FED) began last year.
After reaching an all-time high of nearly $69,000 at the end of 2021, Bitcoin rose to around $16,000 last year, a figure that remained until the start of this year. However, the cryptocurrency has taken a turn and is up over 50% so far this year, trading near $25,000.
The rebound has a particularity: for the first time since the pandemic, there was no longer any correlation between the trends in equities and cryptocurrencies. A correlation over the past 40 days between Bitcoin and the S&P 500 index stood at 0.3 points, after a record high of 0.8 in May, according to Bloomberg: a result of 1 implies that both assets fluctuate together, while a smaller number indicates the opposite.
Latin America will face a broad-based recession this year as consumption slows and central banks keep interest rates high, according to the latest projections from Oxford Economics. Argentina, Chile and Colombia are expected to face contractions throughout the year as consumption in the region began to decline late last year. Meanwhile, high borrowing costs in Brazil and Mexico, as well as a slowdown in the United States, will continue to dampen growth, according to Bloomberg.
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