Expectations for economic announcements support dollar bonds as they rise for the third consecutive day

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Argentine assets continue the improvement that started on Monday in the markets. On the equity front, although ADRs are trading mixed Thursday, the Merval index on the Buenos Aires Stock Exchange maintains its positive sign and is up 0.9%. Dollar bonds climb for the third consecutive round, this time up to 2.5%.

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A combination of factors appears behind this increase in Argentine newspapers. In any case, they start to close the month with heavy losses. On the one hand, it influenced the best global humor. Wall Street’s major indexes are mixed this Thursday, although both the Nasdaq and S&P 500 are trading higher.

“In the US, employment, activity and price data are mixed again. As last week’s jobless claims surged after weeks of declines, the gauge that measures how quickly out of unemployment gets firmer GDP for the fourth quarter of 2022 grew, albeit slightly below the previous quarter”, they summarize in Aurum.

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“Looking forward to seeing the impact of these data on the opinion of policy makers, global markets are bullish again”they added.

Against this backdrop, all emerging market bonds traded positive. However, in the case of Argentine debt there are some additional impulses. The government’s visit to the United States, with Massa’s meeting with the authorities of the International Monetary Fund and President Alberto Fernández with President Joe Biden, fuel the expectation of new classified ads that can “alleviate” the situation of fragility of reserves.

The central bank sold more than $1.8 billion in March, the lowest momentum in two decades for the third month of the year. Ariel Manito, of the PPI, underlined how this dynamic is “explosive”: “The drought complicates things even more, considering that, in itself, it is an election year, with all that that entails. There are many unknowns and if a new soybean dollar is confirmed, it would be key information to encourage producers to liquidate“, She said.

The political factor is also fundamental: Argentine assets rebound after former president Mauricio Macri announced his decision not to participate in the upcoming elections. “Even the recent political signals would have given their contribution to the renewed positions, even if so far they are not enough to define them as ‘electoral exchange'”, said the economist Gustavo Ber.


Source: Clarin

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