:quality(85)//cloudfront-us-east-1.images.arcpublishing.com/infobae/3DRIUSXB3FYK26KTNATTB4LTRU.jpg "Markets: the stock market is recovering under pressure from Wall Street and bonds are also climbing sharply 1")
Argentina’s stock market is trading higher on Thursday on opportunity buying amid investor caution that has reduced liquidity, as global markets await firmer rates from the US Federal Reserve ( fed).
After a negative turn on Wall Street, dollar bonds fell another 3% and country risk rose above 2,100 points
The S&P Merval lost 3.2% and ADRs fell 9%. The free dollar closed at $377 and the BCRA sold $49 million in the market
index S&P Merval of the Buenos Aires Stock Exchange it rose by 1.2%, to 248,000 points at 4:40 p.m., after losing 1.7% in Wednesday’s session.
The Fed’s latest minutes noted that “virtually all participants agreed that it was appropriate to raise the target range for the federal funds rate by 25 basis points.”
Markets: the stock market fell 3% and Argentine stocks on Wall Street fell 9%
The S&P Merval fell 3.2% to 249,061 points and global bonds in dollars subtracted 2.8% on average in New York. Argentina’s country risk has exceeded 2,100 basis points
Volatility in global stock markets is not over yet as more investors believe interest rates should stay higher for longer, a survey by Reuters among equity analysts, a slight majority of whom expected a correction within three months.
The bone global bonds of Argentina, in dollars with foreign legislation, advance of 1.7% on average, after rebounding nearly 5% on Wednesday. These issues of the 2020 debt swap reduced the losses accumulated during the month of February to 11%.
Financial week: Free dollar stabilised, but reserves and bonds fell
The “blue” dollar closed at $377, unchanged from the previous Friday. BCRA sold $470 million to MULC. Dollar bonds fell 7% and country risk rose above 2,100 points
During this time, the countries at risk from JP Morgan, which measures the spread of US Treasury bonds with similar emerging issues, subtracts 81 whole numbers and reaches 2,005 dots Bases for Argentina.
The Minister of Economy, Sergio Massaand the Under Secretary for International Affairs to the United States Treasury Secretary, Jay Shambaughanalyzed at the G20 meeting in India the economic stability plan, the negotiation with the International Monetary Fund (IMF) and changes at the World Bank following the early resignation of its president, David Malpass.
On the other hand, it has been learned that the IMF has approved an initiative to allow a group of bilateral credit agencies with which Argentina has financial relations to accumulate Special drawing rights (SDR), the currency of the IMF, as part of its reserves, which could open the door for the country to possibly obtain loans from these entities with this unit of account instead of being made in dollars.
The organization’s board of directors Kristalina Georgieva has made it possible to expand the list of multinational credit institutions that may be part of this prerogative. In this case, the Andean Development Corporation (CIF), the Inter-American Development Bank (IDB), the Caribbean Development Bank (CDB), the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB), two of the first to have an open investment portfolio with l ‘Argentina. With the CAF and the IDB, it currently has projects for $4,015 million there $12,756 millionrespectively.
A rating of SBS Group warned of a ‘double red in January’ as ‘January’s primary fiscal outturn showed a deficit of $203.9 billion, improving from December’s red, albeit worsening from to January 2022, also taking into account the favorable budgetary seasonality of the first BIMESTER. Thus, the primary deficit over the last twelve months amounts to 2.5 points of GDP, with a budgetary deficit (financial result after repayment of the debt) to 4.5 points of GDP”.
Similarly, “total revenue declined 3.2% in real terms year-over-year, with our seasonally adjusted series indicating a decline of 1.9% per month without seasonality,” they added. of the SBS group.
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