The Argentine stock market session ended with slightly favorable figures this Thursday, still conditioned by a complicated domestic and also external situation, to end June with large losses along with renewed concerns about a global recession.
the leading index S&P Merval of the Buenos Aires Stock Exchange gained 0.4%, in the 88,449 points, to reduce the fall in the month a decrease of 4.2% and sustain in 2022 a gain in pesos of 5.6 percent. Measured in dollars “counted with settlement” implicit in the Argentine ADRs operated on Wall Street, the Merval cuts 14.8% in 2022, close to its price floor from July 19, 2021.
“In this line, the market opens up the possibilities that the current prices could be an entry point by testing supports close to minimums and very low relative prices; however, local instability enables a risk to be considered by all investors”, he said. javier ravadirector of Rava Stock Market
June was a complex month for the local financial market due to collapses in bonds and the manifest weakness of the peso, where the stock round sought to be a place of refuge among highly liquid assets, operators said.
Argentine shares, valued in dollars, fell to their lowest prices in almost a year
It must be remembered that the main indicators of the New York stock markets fell between 0.8% and 1.3% this Thursday, to round off one of the most negative semesters in the history of Wall Street. So far this year, the Nasdaq tech panel is down 30%the S&P 500 average shed 21%, while the Dow Jones Industrials fell 15%.
Likewise, the Argentina’s economy suffers from rampant inflation of around 35% in the semester and would rise above 75% in the year, in a context of exchange rate traps and internal disputes in the ruling coalition.
Bonds, both in pesos and in dollars, showed a slight positive trend in general, in the third consecutive session of improvement, but still close to their minimum prices since they went on the market in September 2020. risk country of Argentina remained close to the 2,400 points basics, after posting a post-trade intraday record high of 2,508 points on Tuesday.
Jerome Powellpresident of the US Federal Reserve, indicated that for the moment there is room for a contractionary monetary policy that has inflation as its main objective, but that still offers room for the economy not to enter a recession, that is, with a “soft landing”.
The head of the US central bank declared that the main risk is that the US economy falls into a “regime of higher inflation”. For this reason, rates could go as high as necessary, even if that means a risk to growth of the USA and, therefore, with influence on the activity performance of the rest of the countries.
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