Wall Street trades head-on for emerging markets. AP photo
Hand in hand with a new decline in global equity markets, Argentine assets are starting the week off on the wrong foot. On Wall Street the newspapers of Argentine companies are mostly trading down, with declines exceeding 4%. Bonds replicate this trend and their prices fall again, even after Sergio Massa confirmed Gabriel Rubinstein as his deputy minister, an economist respected by the market.
In this frame, country risk, What does JP Morgan bank measure?it rises by 20 points and operates at 2,478 units.
The new economy minister faces the challenge of reversing market expectations a global “headwind”. This Monday, the markets are trading with strong risk aversion e the strengthening of the dollar globally causes the euro, the yen, the yuan and the real to weaken.
“We pointed out that the markets were too pleased with what the Fed could do.”, Aurum Valores analysts pointed out. “Recent speeches by several Federal Reserve officials have helped reverse that complacency. Now expectations of rate hikes have grown and a possible subsequent rate cut should take place in July 2023 “.
This context pushes Argentine bonds not to hold up. Before the official opening of the markets, dollar stocks fell by an average of 1%, and scored their fourth consecutive round of reds. Dollarized debt has accumulated nearly 10% falls so far this month.
PPI analysts noted: “Regarding the latest low, from July 22), bonds remain with their heads above the water, standing up 22.77% from that weighted average price of $ 19.62. However, the monthly balance still looks complicated. In the annual performance, history repeats itself and Argentine bonds show losses of up to 34.3%, with a long way to go to reverse the situation. “
YN
Ana Chiara Pedotti
Source: Clarin
