Investors’ eyes are on inflation
After scoring new historical lows, dollar bonds partially recover on a Wednesday when investors are wary of inflation. Before local INDEC data was known, it was already reported that in the United States year-on-year inflation reached 9.1% last month. the highest figure since 1982.
The number feeds market fears that the Federal Reserve will have to respond to stricter tariff policy and the main indices of Wall Street goes downwhich reached 0.8% in the case of the Dow Jones Index.
In this context, Argentine shares listed in New York were presented most of the victims, which reached 3.4%. There were some exceptions, which moved positively, among which the ADRs of Pampa Energía and YPF, which showed an improvement of 2% after midday.
There is an acceleration of the rate hike by the Fed, the central bank of the United States a bad sign for emerging countries. However, Argentine bond prices tell a different story.
Therefore, despite bouncing up to 1.7% this Wednesday on a day of high volatility, these sovereign issues reached a new low price. The GD35 is already trading below 19 US dollars, while in Argentine securities there are already trading in the 17 US dollars zone with the AL29 and AL30.
In this context, the country risk reaches a new high from the time of Alberto Fernández and is positioned around the 2.758 points. Since the beginning of the year, the indicator that measures JP Morgan’s banking has worsened by more than 60%.
“The international scenario and that of emerging markets, in particular, are not the best. If we look at Brazil, we see that stocks are at their lowest in 20 years and one wonders why this is happening, if they have not gone through a crisis as strong as ours, “explained Ariel Manito of PPI. “In previous years we have had a favorable wind and Argentina has created new plans, but today the world has no favorable cards,” he added.
Since the Guzmán exchange in 2020, Argentine bonds they have lost 65% of their value and the rates they pay prove it excessive distrust of the market: on average, Argentine debt returns 43%, although there are bonds that already pay up to 50%.
The operators claim that the change of name at the helm of the Ministry of Economy not enough to reverse expectations. Some even talk about itGuzmanism without Guzmán “.
“Tensions are intensifying within the ruling coalition following Batakis’ announcements that go in the same direction as foreseen in the IMF agreement,” says a report by Aurum Valores.
Ana Chiara Pedotti
Source: Clarin
