The stock market of Argentina lost ground this Thursday, to the beat of the deep downward bias of the main global stock markets following the rise in rates by the US Federal Reserve (Fed) and its potential impact once morest the progress of the economy.
Abroad, the abrupt outflow of funds in shares stands out, with a Nasdaq of Wall Street that subtracts 5%while the S&P 500 and the Dow Jones give up between 3 and 4 percent.
Argentine stocks and ADRs that are traded in dollars in New York reflect these general declines. Noteworthy are the losses of Ternium (-12%) and Free Market (-10%). YPF cuts 6%, to USD 4.13while the bank papers fall more than 5 percent.
the leading index S&P Merval porteño yielded 3%, to 86,700 points at 1 pm, once morest a 0.2% retraction on Wednesday.
International markets continued reacting to the Fed decisionwhich raised its benchmark yield by half a percentage point the day before to 0.75% and 1%, the biggest increase in 22 years, without ruling out another hike soon and beginning to cut its bond positions since June in its battle to reduce inflation.
“Specifically, it was expected to know regarding the interest rates and balance sheet stock reductiontaking into account the objective of curb high inflation that persists in the northern country. In this sense, the market expected and discounted an increase of 0.5% in the reference rates and news regarding a beginning of decrease in assets”, explained javier ravadirector of Rava Bursátil.
In the subsequent conference, the president of the North American central bank, Jerome Powell, offered indications regarding the monetary policy that the Fed organism might adopt from now on. In this conference it was highlighted that raises of 0.75% are out of the question by the FOMC Federal Open Market Committee or Federal Open Market Committee) for the moment and that also takes into account the abrupt influence that resulted from the commodities regarding inflation.
Among other things, he left a market with unbeliever of the reaction of a More lax Fed that rules out a recession in the US and, on the contrary, prepares for a more drastic monetary tightening in the coming months.
To this global acceleration of inflation, where in Argentina a floor of 60% is projected for 2022, is added the public fight between the internal currents of the coalition of the government of the president Alberto Fernandezwhere the hard wing who answers to the influential vice president Cristina Kirchner opposes the latest measures of the Minister of Economy Martin Guzman.
The administration of the Front of All closed on March 25 a agreement with the Fund International Monetary Fund (IMF) to restructure the debt contracted within the framework of the stand-by loan disbursed between 2018 and 2019 for some 44,000 million dollars, although this did not put a cloak of calm on investors either.
This new program is committed to increase the reserves of the Central Bankreduce inflation, reduce the fiscal deficit, offer positive rates in real terms and apply cuts in energy subsidies.
Argentine Stock Exchanges and Markets (ByMA) announced his investment in the firm Quantexthe Argentine fintech dedicated to the development of financial solutions, with the aim of promoting the trading of fixed income instruments and public and private financing in the capital market.
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