After a volatile start to the week, the global market rallied on Tuesday with expectations that the US banking crisis would put a damper. limit the Federal Reserve’s rate hike. The major Wall Street indexes move with strong rises and this improved mood has an impact on Argentine asset prices.
Wall Street started the day Tuesday on a positive note and the Dow Jones Industrials, its leading indicator, added 1.04% driven by the financial sector which rebounded Tuesday after days of jitters over the Silicon Valley Bank collapse (SVB). ) and to coincide with the February US inflation data, which fell to 6%.
Therefore, the New York Stock Exchange was trying to shake up today five days of nerves and tension the shares of the Californian bank SVB have plummeted since last Thursday, which was closed down by the US authorities the following day, and which have affected the entire financial system with repercussions on the entire economy.
The banks hardest hit by the SVB’s intervention and Signature Bank, which closed last Sunday, rebounded strongly after seeing their shares plummet in recent days, while several credit agencies such as Moody’s have indicated them as possible candidates for new closures .
As reported by the agency EFE extensionFirst Republic was up 48% after opening, Western Alliance Bank was up 43%, PacWest was up 53%, Comerica was up 11%, and Zions was up 15%.
The same happened with Argentine shares listed on Wall Street they all bouncedwith BBVA, YPF and Despegar in the lead, with jumps of almost 5%. This supports the Buenos Aires stock market which rose by 3.5%
Against this backdrop, Argentine stocks and bonds rallied. After several weeks in the red, dollar-denominated stocks started the day higher rises up to 1.4%, in the case of Bonar 2029. Therefore, country risk dropped 0.2% to 2,319 points.
Source: Clarin
