Markets: the stock market climbs more than 6%, after a negative sequence of five rounds in a row

index S&P Merval of the Buenos Aires Stock Exchange rose by 6.2%, to 222,800 points at 4:30 p.m., in an expected positive reaction after having chained five consecutive sessions down, penalized by the volatility of bank shares on Wall Street.

The local stock market moved away from the maximum values ​​recorded between January and February, when the Merval reached a record high of 267,000 points, “in the midst of a negative external day due to growing fears over the situation of banks and a day after knowing the local inflation data for February”, according to the experts of Search for merchants.

During the last five business conferences, the panel of major stocks recorded a loss of 16.4% in pesos – and 20% in dollars “with cash” -. The Merval maintains a gain of 3.8% in pesos in 2023, below inflation, and in dollars went to a loss of 9.8 percent.

Argentinian dollar bonds gain 2% on average, according to developments in foreign law Globals on Wall Street, after dragging losses of 8% last week, while countries at risk of JP Morgan subtracts 58 units and reaches 2,431 stitches basic.

He Swiss creditwhose shares rebound this Thursday by 19%, requested in the form of a loan 50 billion Swiss francs (approximately $54,000 million) at swiss central bank to “proactively strengthen its liquidity”.

He European Central Bank (ECB) decided on Thursday to again increase its principal interest rate at 0.50 point percentages, to fight against inflationdespite the turmoil that has hit the eurozone banking sector in recent days.

The issuing institution’s interest rates are now in a range between 3% and 3.75%. He ECB However, he removed the reference, used in previous communications, to the need to continue to raise rates “significantly”.

On the local market, data from inflation February, which raised the threshold to 102.5% per year and the possibility that the Central Bank will increase in the short term the interest rate to maintain the stability of the dollar of stocks and bond prices.

Lucas Yatchehead of strategy and investments at Liebre Capital, said that “inflation in February was 6.6%, exceeding that of January, thus reaching 102.5% year-on-year and the highest since October 1991. The INDEC CPI was higher than expected in the REM/BCRA Survey of Market Expectations) of 6.1%. core grew 7.7% per month or 143.6% annualized, 5.4% and 5.3% in January and December, respectively. This level represents a all-time high in the series exceeding 7.6% from September 2018. Food grew by 9.8%, while the rest of the chapters grew by an average of 5.8%. Given February inflation ex-post interest rates were not positive, although ledes operated above inflation in the secondary market”.

Yatche recalled that “the REM indicated that inflation in March would reach 6.3%, a level lower than that implicitly estimated by the market in the bond curves. We expect inflationary pressures to remain firm over the coming months. The BCRA’s intervention in the bond market will surely continue, as will the quasi-fiscal deficit and a possible issue of a new soybean dollar. Given the velocity of money at record highs over the past 20 years, the government should accentuate monetary and fiscal policy so that inflation moves at a lower pace.”

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