Operators work on the premises of the Stock Exchange
Argentine shares ended up trading with renewed increases this Thursday, with operations encouraged by opportunity purchases before their depreciated values.
Private securities accumulate a 4.3% rise in pesos after four consecutive profit sessions, compared to generalized falls in external markets.
Wall Street failed to follow through on Wednesday’s subdued gains, when stock prices were hurt by rising US Treasury yields and higher borrowing costs.
At the local level, the focus is on government movements following the recent electoral defeat in primary elections (PASO), which led to changes in the Cabinet and economic announcements to try to regain ground lost at the polls.
The S&P Merval stock index of Buenos Aires gained 1%, to 77,363 units, after also improving 1% in the previous round, but still far from the nominal historical record level of 83,923 points reached when averaging the session of last Monday, September 13 , after the defeat of the ruling party in the legislative primaries.
While the main references of the New York stock exchanges exhibited losses at closing in a range of 0.4% to 1.6%, the ADRs and Argentine shares that are traded in dollars on Wall Street marked the majority of gains, led by YPF and Grupo Galicia papers, with 3 percent.
“The battery of announcements underway since then (defeat of the ruling party at the polls), and which would continue to be staggered until the elections, are deepening fiscal and monetary imbalances, hence the renewed exchange rate tensions, and the greatest challenges that should be faced by the ‘ day after ‘the elections and will require political consensus,’ an economist told Reuters.
The stock market session is negative for public securities. Global bonds from the sovereign restructuring yield 0.4% on average after two consecutive rounds of significant increases, while JP Morgan’s country risk index stands at 1,600 basis points for Argentina.
For his part, the Minister of the Economy, Martín Guzmán, will participate in a summit meeting with the top leaders of the credit organizations while at the same time bringing positions closer to Washington in everything that has to do with commercial relations.
The Merval panel of the Buenos Aires Stock Exchange maintains a gain in pesos of 51% in the course of 2021
The official will hold a meeting between October 15 and 18 with the authorities of the IMF and the World Bank at the world summit of finance ministers. It is not yet confirmed if the meeting will be face-to-face or virtual.
“But for the case, the sign of a new rapprochement with the Fund is the same and will be given shortly before the general legislative elections in November and in the midst of a climate of internal questions that Guzmán received from the vice president in a letter public ”, evaluated the analysts of Research for Traders.
Stocks on Wall Street resume positive numbers, as coverage movements that demanded public debt securities moderated. The yield on the 10-year Treasury note moderated after reaching its highest level in about three months, declining to 1.53 percent.
Prices on Wall Street rose for a second day, following a considerable setback on Tuesday, when investors in equities were seen to move to Treasury bonds.
Investors are reacting to the prospect of the Federal Reserve withdrawing monetary stimulus in the coming months as inflation persists.
“It’s an uncomfortable period for market participants because the Fed’s withdrawal of support will be underway soon and stocks have to learn to stand on their own again,” he said. EFE el analista Charlie Ripley, de Allianz Investment Management.
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