The minutes of the Federal Reserve, where it is revealed what happened behind closed doors at the last meeting on July 26, when US rates were raised 0.75 points, affected the market. They interpreted, through the opinions of the various Fed governors, that monetary policy in the United States can be tightened to combat inflation.
This reading was enough for the New York Stock Exchanges to fall and the US Treasury bonds to rise. The fear of risk affected emerging countries and Argentina was not left out. The index (ETF) that represents them, the EEM lost 0.4%, the same percentage as the indicator for Brazil. For this reason, it was not surprising that Argentine bonds in dollars with foreign law had sharp falls of more than 3%, which caused the country risk to increase 48 units (+2%) to 2,419 basic points.
The dollar was the other side because investors sought refuge there. In this way, with the fall of the bonds that are used to trade the alternative dollars, there was a strong rebound in prices. The AL30D (-2.46%) and the GD30D (-2.75%) caused the MEP dollar to rise $5.59 (+2%) to $281.37 and the cash with liquidation, $6.07 (+2, 2%) to $284.13. The free dollar accommodated to the situation and at the end of the wheel it rose $1 to $292.
In the wholesale market, the dollar increased 22 cents and closed at $135.56. The Central Bank was able to make its first large purchase of the month and won USD 80 million, which helped to recover less than a quarter that was lost in the previous round. In this way, they rose USD 37 million to 36,902 million. The fall in gold and the strengthening of the dollar against all currencies prevented a more vigorous recovery.
“You have to look at the context. Nothing more than that. In the morning, Argentine bonds and those of the region were very negative in New York. The JP Morgan Emerging Markets EMBI fell sharply and there was a risk aversion environment in global markets. I don’t think today’s reaction is due to any driver local since what was announced in the rates is in line with what we expected, that is, little or nothing. There is no local novelty that has mobilized the markets”, said the financial analyst Franco Tealdi.
The Stock Exchange, although it gained in pesos, lost in dollars. The amount of business was reduced to $1,992 million and the S&P Merval, the index of leading stocks, rose 0.94% but measured in dollars fell 1.7%. The best happened by Loma Negra (+6.30%) because as the electoral year approaches, more public works are expected and a reactivation in construction is noted. Gas del Norte carrier was another favored stock and rose 2.92% followed by YPF con 2,78%.
The ADR’s -certificates of holdings of shares listed on the New York Stock Exchange- had regular business for $5,804 million. Of course they followed the New York trend and had a bad wheel where the main losers were Free market (-5,3%) y Ternium (-4.3%). The best happened by Loma Negra (+5,7%).
Today’s wheel will define if this reaction of the dollar was the product of what happened abroad or if it is a local trend. Until now the market has shown advances and setbacks in the exchange. What has not changed is the downward trend in reserves.
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