The stock assets of Argentina seem to be distancing themselves from the erratic behavior of the indices of the main international markets and resumed their gains this Tuesday.
Stocks and bonds traded higher, with a Stock market in nominal recordwhile investors who hid behind highly liquid paper against complex inflation and the weakness of the domestic currency, while the euro falls and signs from the US Federal Reserve (Fed) are awaited.
Index Stocks S&P Merval of the Buenos Aires Stock Exchange they gained 3.6%, to 136,997 pointsafter reaching an intraday historical maximum of 137,322 units.
On Wall Street, ADR and Argentine shares gain up to 8.8%, again with YPF in the lead, at $5.17. In the last month the action of the Argentine oil company climbed 78%from the recent floor of USD 2.91 on July 22 last.
“The Stock Exchange presents a good opportunity with its prices in pesos, that is why there are titles of items with energy, services and financials that help this upward behavior,” he explained to Archyde.com a foreign private banking analyst.
Meanwhile, prudence persists in the market while awaiting the statements of the head of the Fed, Jerome Powell, at the economic policy forum in Jackson Hole this week.
Los dollar bonds recover almost 2% on average, according to the reference of the Globals with foreign law, while the risk country of JP Morgan, which measures the rate gap of US Treasury bonds with similar emerging issues, subtracted 42 integers for Argentina, to 2,396 points basic.
The financial wheel captured an improvement in expectations, product of the appointment of Gabriel Rubinstein as Deputy Minister of Sergio Massa in the Palace of Finance, and also of the progress of the Government’s negotiations with leaders of agriculture to promote the liquidation of exports.
Federico BroggiSales Trader of Grupo IEB (Invest in the Stock Market), pointed out that “the appointment of Rubinstein is a good news. The dollar has already dropped a little in cash with liqui. Rubinstein has a understand what the problem is current economic situation and is qualified to put together a plan and then also this designation shows that Massa can put together his teamas it validates a little his power as his role as a leader” in the Palacio de Hacienda.
“In economic matters, the big question that the market naturally asks itself -because it always asks itself- is how far Rubinstein will be able to go and how far he will be able to do the things he wants to do. Rubinstein understands that we must continue within the program agreed with the IMF and that this is essential for avoid going to a hyperinflation scenariofor which we hope that in the short term he will meet with directors of the organization, “added Broggi.
The analysts of Personal Portfolio Investments They also referred to Rubinstein’s appointment and stated that “the renowned economist stated that the highest priority is to end the fiscal imbalance. In turn, he declared that the Treasury should not spend more than its income. In other words, it should not resort to new monetary assistance, which in a context in which inflation is traveling at 7-8% per month, exacerbates the risks of spiralization”.
“If you keep the the status quothe fiscal red is aimed at closing the year at 3.5% of GDP -one point above what was agreed with the IMF- The tariff segmentation, announced last Tuesday, only implies a saving of 0.1% of the Product in 2022, so Rubinstein will have the challenge of making a greater fiscal adjustment,” they added from Portfolio Personal.
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