Financial day: the Stock Market started May with a new record and after the drop in rates, financial dollars rose

Financial day: the Stock Market started May with a new record and after the drop in rates, financial dollars rose
Financial day: the Stock Market started May with a new record and after the drop in rates, financial dollars rose

Argentine stocks support their prices on Wall Street. (REUTERS/Brendan McDermid)

Argentina’s stock assets rose this Thursday with the inertia of the legislative support of the “Bases Law” obtained by the Government of Javier Milei, in its search to deregulate the economy and attract investors to get the country out of the crisis. On the other hand, the day featured the surprising decision of the Central Bank to lower its reference rate again by 10 points percentages, at 50% annually, just a week after having adjusted it to 60% due to the improvement in the downward path of inflation.

While the leading index S&P Merval of the Buenos Aires Stock Exchange rose 3.5%, to a nominal record of 1,369,673 pointssovereign bonds in the Electronic Open Market (MAE) experienced an average gain of 0.4 percent.

In New York, the 3.3% jump in the shares of Free marketbefore knowing its balance sheet corresponding to the first quarter of 2024 at the close of operations.

Source: Rava Bursátil-prices in dollars.

Dollar bonds lost a slight 0.3% on average, according to the Globals with foreign law reference on Wall Street. He risk country of JP Morgan rose eleven units for Argentina, in the 1,236 points basics at 5:40 p.m.

After the “Bases Law” was approved on Tuesday in a marathon session thanks to the support of legislators allied to the Government – which has few representatives in Congress -, the deputies also approved the tax reform proposed by Milei, who assumed power in December. Now the project must go through tough negotiations in the Senate.

“Being able to move forward with the reforms and the fiscal package is important in order to consolidate the sustainability of the fiscal surplus, not only because of its dynamics but also because of the political consensus that it would imply in seeking to extend the high social approval and also aspire to soon be able to a reactivation of economic activity can be achieved,” remarked the economist Gustavo Ber.

“The idea is that at some point during the year we are going to open it” to the exchange market, Milei said in a recent radio interview, but to do so “we need to do a few things” and he commented that “one is to finish solving the currency problem.” trapped dividends, another to end remunerated liabilities”.

This is channeled with the decrease in inflation and rate cuts “and that will also allow us to exit the Central Bank’s positions and go to the Treasury. With which, let’s say, we continue cleaning the Central Bank’s balance sheet,” added the president.

He free dollar The operation ended without variations this Thursday, $1,040 for sale. With a wholesale dollar that gained 1.50 pesos to $878, the exchange gap remained at 18.5 percent.

Meanwhile, the stock market parities of the “counted with liquidation” and the MEP gained more than 2%, in an upward trend that was noticed after the new cut of 10 percentage points for the BCRA’s monetary policy rate was known, now at 50% annual nominal. The “cash with liquid” once again exceeded $1,100, a nominal maximum since last February 21, to $1,122.41 in the average of shares and $1,111.03 through bonds.

The amount traded in the cash segment of the wholesale market reached USD 295 million this Thursday and remained at low levels for this time of year, when seasonally a greater flow is received from agricultural exports, which are delayed after union measures. and the adversity of heavy rains. However, the Central Bank purchased a relevant amount of USD 161 million in the exchange market, 54.6% of the total on offer, and was once again relegated to the demand of importers.

The International reserves grew by USD 614 million in the first round of May, USD 28,189 millionboth due to cash purchases, the improvement in other assets that make up the reserves and also rearrangement of balances in foreign currency, since “normally at the end of the month the banks reduce the sold position and restore it at the beginning of the month,” indicated sources from the BCRA.

The presidential spokesperson Manuel Adorni He stated that “there are no definitions” about a currency exchange line (“swap”) that the BCRA has with the People’s Bank of China, after the chancellor’s trip. Diana Mondino to the Asian nation to meet with local authorities.

The US Federal Reserve (Fed) held rates steady on Wednesday and signaled that it remains leaning toward an eventual reduction in borrowing costs, but warned of disappointing inflation readings and suggested possible stagnation in the move toward greater balance in the economy.

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