The minutes of the last monetary policy meeting of the Federal Reserve from the United States showed that it is faster rate hike possible than anticipated and that it also reduce its asset holdings to control high inflation, which worked against assets in emerging countries.
The major Wall Street indices were in the thick red, with a 3.3% loss for the Nasdaq technology, and 1.9% in the average S&P 500 at the close. The Dow Jones fell 1.1 percent.
The actions of Mercado Libre plummeted 10%, while Globant sank more than 7 percent. Argentine unicorns that are traded in dollars on Wall Street led the declines in 2022, with a 17% accumulated in three operating sessions of the new year. Mercado Libre ended at USD 1,129 (-9%) and Globant, at USD 262.13 (-6.5%).
Argentine unicorns are the ones that suffer the most from the price adjustment on Wall Street and fall 17% in 2022
The Argentine market moved along the same lines, where the operational prudence of investors who awaited details of the Government’s technical negotiations with representatives of the International Monetary Fund (IMF) to refinance a large debt also acted.
The indicators of the Buenos Aires Stock Exchange traded with a frank drop at the close, after global markets operated in decline, known that Federal Reserve officials affirmed that a strengthening economy and rising inflation they could lead to earlier and faster interest rate increases than expected.
The shareholder S&P Merval of the Buenos Aires Stock Exchange reduced 1.7%, to 83,835 units, after giving up 0.3% on Tuesday due to profit taking and after leading the investments in 2021 with an increase of 63% in pesos.
The Minister of Economy Martin Guzman After the closing of the stock exchange deals, he presented the details of the negotiations with the IMF before the ruling party governors, since those of the opposition refused to attend, considering the initiative as demagogic.
“It is necessary to agree (…) the agreement with the Fund would be a great opportunity “he said in television statements Hector Torres, former Argentine director at the IMF, in statements reproduced by Archyde.com.
Market analysts do not rule out that, while the negotiations continue, Argentina will seek bilateral credits as a short-term financial outlet and thus not fall into default before the multinational organization.
An official source said at the beginning of the week that Guzmán will present three key criteria with a view to the agreement that the government hopes to close with the IMF: fiscal result, monetary issue and Central Bank reserves.
The government of Alberto Fernandez It seeks to renegotiate with the multilateral organization some USD 45,000 million impossible to cover under the current scheme, in the face of an economy once again hampered by fears caused by a sharp third wave of COVID-19.
Global bonds fell for the third consecutive session, accumulating a loss of more than 3% in 2022. The risk country of JP Morgan, which measures the rate gap of US Treasuries with their emerging peers, climbed 24 units for Argentina, in the 1,755 points basics at 5:40 pm.
Sovereign bonds traded in the Electronic Open Market (MAE) fell 0.5% in their average in pesos.
Free dollar rose
The price of free dollar experienced a gain of one peso this Wednesday, to undergo surgery at $ 207.50 for sale. The marginal dollar traded at a record $ 210 during the last operational round of 2021, on December 30, while it closed the year offered at 208 pesos.
With a dollar wholesaler who earned five cents, to $103,14, the gap between the “blue” and the official exchange rate stands at 101.2 percent.
In a wholesale round with a slight recovery in the volume traded, of USD 223.7 million in the spot segment, “the BCRA finished the third round of the week with purchases for USD 20 million”, He stated Gustavo Quintana, agent of PR Corredores de Cambio.
The dollars traded through stock market assets advanced between two and three pesos in this session, to $ 208.45 for the “cash with settlement” and $ 199.22 implicit in the MEP dollar:
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