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Country risk sank as bonds and stocks rose, following the announcement of the meeting with the IMF

The Government announced this Wednesday a new technical meeting between the staff of the IMF and officials from the Ministry of the Economy and the Central Bank. The encounter shows a acceleration in the negotiation and, after an initial raise, the country risk reacted lower.

On Tuesday, the indicator had reached 1905 points, although then it fell back to close at 1898 units. In the first hours of trading on Wednesday, the country risk reached 1,900 units, but then it was punctured up to 1825 points. Thus, it scored a drop of 3.8% (73 points) on the day.

Read also: Blue dollar today: how much it is trading at this Wednesday, December 1

The improvement in the indicator produced by JP Morgan is in line with the good performance of dollar bonds, showing mostly green this afternoon.

Bonds recovered, with an eye on the IMF

In a day mostly positive For world markets -which fell at the close due to the advance of the omicron variant in the United States-, Argentine assets followed the trend and registered increases.

Dollar bonds advanced to 7.4% in the case of the title title to 2030 (AL30D). Also registering increases of more than 6% are titles with local legislation that expire in 2041 and 2038.

“After the strong weakness that they have been accumulating in recent times, domestic assets are rehearsing a rebound technician taking advantage of the external clean and jerk “, analyzed the economist Gustavo Ber, partner of the eponymous consulting firm.

Without front-line officials, this weekend there will be meetings between the technical teams of Argentina and the IMF.  (Photo: Twitter / @ KGeorgieva)
Without front-line officials, this weekend there will be meetings between the technical teams of Argentina and the IMF. (Photo: Twitter / @ KGeorgieva)

“The eyes are still directed towards the possibilities of reaching a consensus between the ruling party and the opposition that allows the validation of an economic ‘roadmap’, and also manages to be approved by the IMF ”, he added, and stressed that the understanding must be strict to improve the expectations of economic agents and curb mistrust.

The actions, between the good external climate and the IMF

After closing November with significant casualties, Actions Argentines listed in New York (technically known as ADR) began the last month of the year with hikes who arrived at two figures.

Country risk sank as bonds and stocks rose, following the announcement of the meeting with the IMF

“The rise has to do with the meeting with the FMI and speculation about the presentation of the multi-year plan. The market is positioning itself and speculating on that, all about the very low price base, so they are opportunity purchases “, he indicated Gustavo Neffa, partner of Research for Traders.

This Wednesday, moreover, was the first day in which the Argentine market operated within the “Independent” category according to the MSCI company that produces indices. The decision was known in June but took effect on December 1. While it is a reduction In the classification, there was a rebalancing of the investment portfolios of the large funds that follow the indexes of that manager.

International markets rose this Wednesday due to the possibility of a cut in monetary stimulus by the Federal Reserve.  (Photo: Andrew Kelly / REUTERS).
International markets rose this Wednesday due to the possibility of a cut in monetary stimulus by the Federal Reserve. (Photo: Andrew Kelly / REUTERS).

The papers of Irsa soared 13.4%; followed by Grupo Financiero Galicia (8.6%) and IRSA Propiedades Comerciales (8.6%).

At the local level, the shares also closed in positive territory. The leading index of the Buenos Aires market, the S&P Merval, increased 7.4% this Wednesday. Within the main panel, the largest increases were for Central Puerto (14.2%), Pampa Energía (11.1%) and Grupo Financiero Galicia (10.4%).

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HELEN HERNANDEZ

Helen Hernandez is our best writer. Helen writes about social news and celebrity gossip. She loves watching movies since childhood. Email: Helen@oicanadian.com Phone : +1 281-333-2229

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