The Wall Street’s main indices fell around 1% this Monday, when investors evaluated the consequences of a new set of sanctions imposed by Western countries on Russia for its invasion of Ukraine.
The shares and ADRs of Argentine companies that are traded in dollars on the New York stock exchanges traded with a predominance of negative numbers. At 12 noon they led the casualties Grupo Galicia, YPF and Central Puerto, with 3 percent.
On the winning side, the titles of Cresud, with a 4%because the papers of the agro-export group benefited from the jump in grain pricesdue to fears for the global supply of wheat and corn as the Russian and Ukrainian markets closed.
The nervousness in the international markets was also reflected in the increase in the price of texas intermediate oil (WTI) opened this Monday with a strong rise in 4.2%, up to USD 95.45 a barrelin reaction to western sanctions to Russia.
Benchmark oil in the US soared in parallel with Brent, which was above 98 dollars, due to fears of a potential reduction in energy supply due to the Russian invasion of Ukraine.
Meanwhile, the bonds Global of Argentina -in dollars with foreign law- down 2.5% on averagehit by the growing “flight to quality” of investors, in the face of geopolitical uncertainty.
In that sense, the risk country JP Morgan, which measures the rate gap of US Treasury bonds with similar emerging issues, advances 13 units for Argentina, to 1,806 points basics.
The United States and other Western governments have responded with sanctions affecting the Russian financial system and that might cause a rapid entry into recession in that country, according to analysts.
And this Monday it was learned that the Office of Foreign Assets Control (OFAC) of the US Treasury Department prohibited Americans from conducting transactions with the Central Bank of the Russian Federationthe National Wealth Fund of the Russian Federation and the Ministry of Finance of the Russian Federation.
This action effectively immobilizes any assets of the Central Bank of the Russian Federation in the United States or by US persons, wherever located.
At fifth day of the Russian invasionthe market is awaiting the negotiation that is taking place between delegations from both countries, and in which Kiev will try to achieve a ceasefire.
Meanwhile, the OPEC and its allies (OPEC+)which includes Russia, are scheduled to meet this week to decide whether to continue their policy of increasing production in April.
Saudi Arabia showed its commitment to the agreement, by which the group plans to inject an additional 400,000 barrels of oil per day each month until September to respond to post-Covid demand.
However, the conflict in Eastern Europe has caused risk aversion in the markets and fears of disruptions to supplies of Russian grain, coal, crude oil and gas, which have put pressure on prices.
On Thursday the 24th, the day on which the Russian president Vladimir Putin ordered Russian troops to intervene in Ukraine, Texas and Brent futures contracts exceeded $100 a barrel for the first time in eight years.
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