Argentine bonds and stocks are collapsing in the United States and the risk to the country reaches 2,100 points

The decline in stock markets abroad weighs heavily on local assets.

The Argentine stock market started the week in red, in the midst of unfavorable global prospects, due to fears of higher global inflation, which will force central banks to raise interest rates, affecting economic growth.

Affects the renewed decline in domestic financial assets that major Wall Street indices traded in deep declines this Monday, with S&P 500 on track to confirm bear market or the “bear market,” given the growing fear that aggressive interest rates could plunge the U.S. economy into recession. The industry average The Dow Jones fell 2%; the S&P 500 fell 2.6% and the Nasdaq Composite fell 3.2% percent.

As part of global risk aversion, Argentine stocks and bonds are falling everywhere

On the other hand, the growing doubts about the progress of the economy local, arising from the difficult implementation of the objectives agreed with Monetary fund The international (IMF), inflationary pressures and the collapse of the peso bond market exacerbate the unfavorable outlook for the local financial market.

At 13:20 the stock index S&P Merval on the Buenos Aires Stock Exchange lost 0.4% to 88,800 pointsafter accumulating a decline of 2.9% last week.

“On Friday, Merval broke 400 points (measured in dollars,” counted with liquid “), which has not happened since May 9 and was at its lowest point since January 27 this year,” he said. Personal portfolio investments.

On Wall Street, ADR and Argentine stocks are traded in dollars fall to 10%con Free market and takeoff to the head.

On the other hand, dollar-denominated bonds issued with sovereign restructuring in 2020 sank 1.9% of the average value of Globals under foreign law to extend the series that buried them at their lowest prices since they went public on the secondary market.

Argentina’s government risk exceeds 2,100 points for the first time since debt swaps with private creditors in 2020.

CER-linked peso bonds fell between 1 per cent and 2 per cent to extend a series of losses unleashed last week.

In this sense, risk side of JP Morgan grew 70 units for Argentina, to 2113 points mainly, maximum from 10 September 2020

Government risk measures the difference in yields on US Treasury bonds. In this regard, the percentage of treasury at 10 years rose to 3.32% per year, the highest since April 27, 2011, more than a decade agoin a clear sign of investor aversion to risk, which hits stocks and bonds harder in emerging markets.

“Sovereigns in dollars again showed a sharp decline, in line with the trend for peso titles, given doubts about the future of the national economy in the midst of high inflation, which is difficult to control and increase the fiscal deficit for more public spending, “analysts said Research for traders.

“Investors disarmed positions in the face of the prospect of slowing inflation in the second half of the year, which was partly reflected in the shorter titles, except that they had risen considerably. However, the decline in longer titles is due to fear of re-profiling of peso debt ahead of the 2023 presidential election and the government’s inability to pull the next maturities, ”said Research for Traders.


Dollar today: the free price rises to $ 212 and reaches a maximum of four months
Markets: Wall Street begins the week with another sharp decline due to expectations of a recession in the United States
The collapse of bitcoin continues and Binance stops withdrawals
Following the collapse of peso bonds, the government will face its first market test
Urgent placements of pesos are growing, as is the debt of the Central Bank, which is using them

Leave a Comment