All Wall Street indices fall and put Argentine assets under pressure
Argentine assets they can’t stand it in a wave of growing international fears and greater distrust of the local situation. The dollar bonds operate again in autumn and country risk continues its upward path and from opening up rises to almost 2,750 points.
On Thursday, the New York Stock Exchange opened lower after disappointing results from two large US banks, in a market preparing for new measures by the US central bank, the Fed, in its fight against inflation. When the major indices fellArgentine shares listed on this market fell by more than 8%with Ternium in the lead.
This pessimism, coupled with the uncertainty generated by the rise in the parallel exchange rate, that on the street it has returned to touch its nominal maximum ($ 285) and the increase in the overcharge for the dollar paper for those consumption that are made outside the country, have also brought down the stock exchange in Buenos Aires. The Merval index loses 1.8% since the start of operations. The card that lost the most was YPF’s, 4.7%
Despite the president’s spokesperson, Gabriela Cerruti, assured that “the market believed in Batakis”, financial stress remains high and is expressed in low price of bonds sovereigns.
“We keep watching parity less than 20% in local law securities. In other words, the bond market on the short end of this curve is practically pricing a predefined value“stressed in Cohen.
“There is greater global risk aversion after knowing US inflation data above expectations and the lack of details on how the new Economy Minister, Silvina Batakis, will implement the measures announced on Monday to reduce the fiscal deficit, ”commented Research for Traders experts.
This Thursday the inflation of June will be known and in City they agree it will be “aged”. In addition, the new parallel exchange rate hike adds pressure, with blue at highs of $ 285 and financial dollars up.
This Wednesday, the president of the CNV, Adrián Cosentino, formalized his resignation from the body that regulates the local capital market, not without rumors about what were the causes of his departure.
what happens on Wall Street
Wall Street opened this Thursday in red and its leading indicator, the Dow Jones of Industrialists, fell 1.97%fearing that the US Fed will announce it higher rate increases interesting to try to contain inflation, which stood at 9.1% in June.
At the same time, the composite market index Nasdaq, which brings together the major tech companies, loses 1.76%.
Fears that the Fed will print a higher-than-expected interest rate hike at the month-end meeting appears to have prevailed on the New York Stock Exchange, which continues to digest the uncontrollable rise in inflation the Fed intends to halt.
In June it stood at 9.1%, a rate not seen since 1981 and pushed, as usual in recent months, by rising energy and food prices.
In one month, consumer prices rose by 1.3%, according to data released by the Bureau of Labor Statistics (BLS).
Figures that do not yet show the effects of the Federal Reserve’s restrictive monetary policy which has raised rates since last March.
The US central bank has raised rates in the last three meetings, and has done so progressively (0.25 points in March, 0.50 points in May and 0.75 points in June).
The Fed has already warned that its intention is to approve a new hike following its meeting this month, which will be held on 26 and 27
“The take-home message for investors is that Fed policy remains data-driven and the central bank will continue on an aggressive (rate) tightening path until inflationary pressures peak,” says a report. of the company BCA Research, quoted by the CNBC channel.
This Thursday morning, the announcement of the results of the largest US bank by assets, JPMorgan Chase, whose shares fell 4.7% after reporting a reduction in earnings, stood out.
According to the institution, this decline is due to the reserves accumulated to cover any losses in the face of the growing risks of a recession.
NEITHER
Source: Clarin
