The shares of Argentine companies fell this Monday, after consolidating a good start to the year. Keeping up with the main Wall Street indices and the investors attentive to the political negotiations for the Omnibus Law this week in Congress, companies listed in New York, They fell by more than 7%, with the banks in the lead.
Global markets opened in the red on Monday after the chairman of the US Federal Reserve, Jerome Powell will rule out the possibility of interest rate cuts Short term.
Jerome Powell said in an interview on CBS’ ’60 Minutes’ on Sunday that the Fed is waiting for more evidence that inflation is heading toward the bank’s 2% target before starting rate cuts. 10-year US Treasury yields rise above 4%.
“We just want a little more confidence before we take the very important step of starting to cut interest rates,” he said.
In this context, ADRs in the banking sector are suffering the most. He Supervielle Bank sinks more than 7%, followed by Macroswhich loses 6.9%, and for Galicia, which fell by 6.2%. Even with these red headlines, stocks have maintained their dollar gains since the beginning of the year.
The bad mood of global markets is striking the Buenos Aires stock exchange, which starts the week with a red of 4.5% Past noon. In the local square, the largest loss corresponds to the role of Telecommunications, with a decline of 5.89%, followed by Supervielle Bank (5.77%) e I believe (5.58%).
In contrast, dollar bonds mostly show advances. The so-called Globaldebt securities governed by foreign law, increase by more than 3%; while local law titles advanced from a lower rung. Argentina’s debt rebounds in February after a weak start to the year, with investors watching for progress Javier Milei is making on the political front to implement proposed economic reforms.
“The scope of sovereign debt in dollars will continue to be strongly influenced by the local level and by the particular debate of the Omnibus Law. In relation to this, its treatment is restarted, which could have great extension. The most emblematic issues are the fate of the collection of national tax, extraordinary powers and privatization,” they said in the PPI.
“In any case, we cannot ignore the international level. Jerome Powell, chair of the Federal Reserve, reiterated that it is probably too early to start cutting rates in the March meeting,” they added. Even if it follows the line with the latest sayings and transcendences, it is a fundamental question to follow closely, ever since directly affects the emerging debt segment.”
In that context, the country risk returns to 1,860 points.
Source: Clarin
