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Operators work on the floor of the Buenos Aires Stock Exchange
BUENOS AIRES, April 12 (Archyde.com) – Argentine stocks and bonds closed lower on Tuesday, affected by the fall in external markets after a US inflation figure in line with analyst expectations, a day before the country South American report the increase in prices for March, which is seen as the highest in almost 42 months.
Analysts affirm that concerns about world inflation affect the markets due to a greater aversion towards risky investments.
In Argentina, the consumer price index (CPI) for March will exceed 6%, becoming the highest monthly inflation of the year, Economy Minister Martín Guzmán announced on Monday night.
“Tomorrow (Wednesday) a hard inflation data would arrive that could accentuate concerns regarding the trend of external markets, as well as the jerks in the political scene in view of the fact that it is preheating for the electoral race next year”, said Gustavo Ber, economist at Estudio Ber.
Argentina recently agreed with the International Monetary Fund (IMF) to reschedule a debt of about 44,000 million dollars, amid tensions within the government coalition and doubts about the fulfillment of the goals set.
“Given the strong acceleration that would have marked the CPI in March, the inflationary dynamic is once again at the center of the scene. This is not only a factor of economic instability, but also increases the tension within the ruling party. “said Argentina’s Cohen brokerage.
US inflation, the most aggressive monetary policy since the Federal Reserve, the war in Ukraine and the advance of COVID in China are issues that weigh on investor sentiment.
* Bonds in the OTC segment ended flat after a bullish start and falling 2% in the previous five sessions.
* The Ministry of Economy will seek to raise 265 billion pesos later through the auction of ‘Lelites’, three ‘Ledes’, ‘Lepase’, a new ‘Badlar’ bond and ‘Boncer TX26’, in addition to a basket made up of 30 % for ‘T2X3’ and 70% for ‘T2X4’, recalled the SBS Group.
* The country risk measured by the JP. Morgan bank rose 10 basis points, to 1,733 units towards the close of the local market (2000 GMT), against its record of 1,991 units reached at the beginning of March.
* In the stock market, the S&P Merval index lost 0.31% to 90,345.86 points as a provisional close, due to intra-hour profit-taking after a bullish start.
* “In the Merval, 92,000 points has been acting as a resistance, while down, 90,000 points has acted as support lately,” said Alexander Londoño of ActivTrades.
* The interbank peso depreciated 0.16%, to 112.76/112.77 per dollar, in a round controlled by the central bank (BCRA), an entity that, in the opinion of the operators, will be pressured to raise its rates to adapt to the new inflationary reality.
* The BCRA board will meet on Wednesday to discuss a possible new rise in the reference interest rate, in the face of a scenario of high inflation and in line with what was recently agreed with the IMF, an adviser to the entity told Archyde.com.
* In the alternative segments, the domestic currency traded at 191 units per dollar in the so-called “counted with settlement” (CCL), 191.7 in the “MEP dollar” and 195 in the informal market or ‘blue’.
(Reporting by Walter Bianchi; Additional collaboration by Hernán Nessi; Editing by Jorge Otaola)