Wall Street Rebound Is Over: Shares Fall and Hit Argentine Bonds Falling 4%

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Despite the celebration earlier in the week, traders knew the rebound in global markets would be momentary. This Wednesday, the global equity markets returned to trading in the red, in what looks like an a taking profit after the rally on Monday and Tuesday; and affecting Argentine assets. Most of the stocks traded on Wall Street are going down. bonds lose up to 4% and country risk rises again.

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The major indices of the New York Stock Exchange opened in red this Wednesday, with the market in Hidden mode before the next steps of the US Federal Reserve. Although data released this week shows that the labor market in that country is starting to cool and that could somehow stop the rise in inflation.investors fear that the Fed will continue to tighten its rate policy of interest.

“It is a bit premature to believe that the Fed will change now. They want to be absolutely sure that they will reduce inflation. We will see that the market will focus more on incoming profits, ”Frank Øland, chief global strategist at Danske Bank, told The Wall Street Journal.

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Almost all sectors of the stock market are moving in the red this Wednesday, with the exception of energy, which is up 0.96% on average. This is because this Wednesday in Vienna, OPEC decided to cut its daily crude oil production by 2 million barrels, a measure that could trigger fuel prices.

This scenario impacts the prices of Argentine companies listed on Wall Street, of which the only ones that are rising are the energy companies, with YPF in the lead. The state oil company’s ADR this year is the clear winner: in dollars, it has accumulated 90% increases since January.

This adverse climate affects emerging debt and Argentine dollar bonds are back in the red, with drops of more than 4%. Public securities that went public in 2020 still maintain an improvement since the end of September, but their annual reds exceed 40%.

Country risk, measured by the JP Morgan bank, rises again and recovers levels that it had not seen since mid-July, in the midst of the peso race. indicator It stands at 2757 points.


Source: Clarin

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