2024-08-05 16:47:44
he The ongoing stock market crash in global markets Originating from Japan, he responded immediately Asia market and Wall Street, which is expected to have an impact on local markets when operations begin in Buenos Aires on Monday.
Economist Fernando Marul said: “Today will be a terrible day for Argentina.” According to pre-market operating conditions, Argentina’s asset operating losses have been between 1.5% and 2%.
As a result, the local financial market has been impacted by the international crisis, with bonds, stocks and the US dollar appreciating, while the government believes that improving macroeconomic conditions can minimize the adverse effects.
Opinion polls. Despite worsening economy, 7 in 10 business owners remain optimistic about prospects
Black Monday: Local bonds and stocks plunge, dollar rises
On the same day, ADRs of Argentine companies fell, and bank bills fell as much as 12%. As the wheel came to an end, these losses decreased, but there were still losses recorded around 9%, for example Edenor.
At the same time, Argentina’s public debt fell as much as 4%, causing country risk to rise to 1,712 basis points.
The impact was immediately felt when the local market opened, with the Merval index plunging 4.5% due to losses in Comercial del Plata (8.9%), Edenor (8%), Transportadora Gas del Sur (7.4%), BYMA (7.4). , macro banks (7.2%), etc.
Biden administration. The U.S. economy suffered a setback in July, with employment falling sharply and unemployment rising.
As far as he is concerned, Blue dollar rises to $1,400 in Buenos Aires, $1,414 in Córdoba, dragged down by financial conditions. As bonds fell, MEP rose to $1,365, while settlement cash rose to $1,355.
The central bank adjusted the wholesale price to $936, so the gap from blue is 51%.
Manuel Adorni, on local financial markets
In this context, comments from the government on the situation are awaited, with presidential spokesman Manuel Adoni minimizing possible adverse effects on the country’s economy.
“We are clear about where our comfort lies: public accounts and inflation are falling,” presidential spokesman Manuel Adorni said.
“What is happening is not new to us,” Adoni assured. “We are always concerned about such incidents, but we know what we are doing and nothing will affect our path.” “
economy. Tax revenues fell 9% in July, showing the economy is not consolidating its recovery
In this way, the spokesman tried to calm the local market, which suffered a sharp decline in all assets at the opening.
Stock market crash: What’s happening in Argentina
At the beginning of the day, the share prices of local companies listed on Wall Street fell by more than 10%, and bonds fell by more than 5%. The unstable outlook affects country risk, with the indicator rising more than 7% in the first three rounds of August, putting Argentina further and further away from the possibility of returning to the market.
Argentine companies piled up new reds as Wall Street futures tumbled, with the Dow Jones down more than 1,000 basis points before the bell in New York. Banks and energy stocks were among the worst hit by the massive sell-off across the world, which traders described as a “cascade”.
Maloul revealed that he expects the dollar to rise one day, bonds and stocks to fall, and central banks to sell reserves. He explained that in this context, the “risk aversion” of investors will cause the Argentine market to suffer the consequences of this global situation.
However, he believes “the market has exaggerated” the consequences of some less-than-stellar economic data released in recent weeks.
Mauler explained a key point: the Bank of Japan raising interest rates, which the outlet expected last week.
“Japan is a source of cheap loans. You take out a loan in Japan and then go shopping around the world. As interest rates rise, the profits are no longer as lucrative.
economy. Tax revenues fell 9% in July, showing the economy is not consolidating its recovery
In this sense, analyst Leonardo Chialva provides the following information:
“According to the Bank for International Settlements, as of March 24, yen cross-border loans reached 328 trillion yen ($2.2 trillion), which represents a 50% increase from the end of 21 (net of yen loans was $742 billion) ).
Mauler also pointed out that the Federal Reserve has delayed cutting interest rates.
“After the bad unemployment data, the market learned that the Fed was ‘behind’.”
Analyst Claudio Zuchoviki posted the following on his “X” account:
Monday was the worst market has been in a long time. It’s not just the fear of a recession. The most difficult thing is facing the current crisis of global leadership.
At the same time, Dario Epstein, director of trader research, also pointed out on social networks: “If the trading system is effective, it should trigger sales orders and intensify the decline. Unlike other crises, the G7 crisis BC is prepared and coordinated and we will see…”
He added: “I’m open to the conclusion: It’s unclear to me whether the sell-off (liquidation) was due to leverage or unwinding due to a combination of slowdowns in the U.S. and China.”
On the other hand, the appreciation of the yen (1 USD to 145 yen) also had an impact on the situation in Japan, improving by 1%.
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