Market reaction to Sergio Massa’s announcements: bonds rise by 2% and shares by 8% on Wall Street

It’s not euphoria, but yes constant growth. Dollar-denominated debt securities, those listed on Wall Street, started this Thursday with average increases of 2% in the so-called “premarket”, the transactions carried out before the markets formally open.

is the pfirst reaction to Sergio Massa’s announcements, although Argentine analysts were left with little flavor on Wednesday after having known the measures.

Operators expected greater accuracy on the foreign exchange market and concrete measures for narrow the gap between the official dollar and the financial dollar.

The bonds, which are trading between USD 23.50 (46 GD) and USD 29 (38 GD) per USD 100, scored it increases between 1.5 and 2%.

Meanwhile, the stocks that started trading in the premarket have done so in green. They watched increases ranging from 1% for YPF to 6% for Galiciaand up to 12% for Mercado Libre (although in this case the increase reflects the good results announced on Wednesday).

JP Morgan’s opinion

“Expectations were high, but the set of guidelines and policy measures are likely to have been announced fail to stabilize the main macroeconomic imbalances “rated the bank JP Morgan in a report after the announcements.

“While waiting for details and further economic measures to be announced in the next few hours and days, our first opinion is that the announcements once again lack the necessary breath and coherence the current challenges require, being far below what the stabilization plan would require in the current dire macroeconomic situation.

The report clarifies Massa’s promise that the Central Bank will stop funding the Treasury with issues. “From mid-June it is the indirect financial support from the Central Bank to the Treasury (through the purchase of bonds) the main monetary expansion factor, instead of the direct one (monetary financing). Therefore, without a more decisive reduction in the fiscal deficit, such a commitment lacks credibility necessary”.