In a new wheel in red for bonds and stocks, the free dollar once again gave the grade with a rise of 2.4% to close at $1,265, an increase that was accompanied by financial quotes. Particularly the stock market dollar, which once again exceeds its record in nominal terms by closing at $1,281, slightly above yesterday’s close, while the cash with settlement (CCL), advanced to 1,311 pesos. This movement of the currency, which was felt with greater pressure at the opening of the wheel and then eased in intensity, was framed by a negative financial climate, in which bonds and local stocks also suffered losses in a context in which, in addition , the international scene influenced.
Since the month began yesterday, operators were waiting for the economic activity data from the United States that was released today with signs of slowdown, which had a negative impact on the mood of investors.
Along with the rise of the free and financial dollar, the S&P Merval fell more than 4%, while in New York, all shares of Argentine companies fell without exception, with falls of up to 8% on the day. Bonds denominated in dollars also fell sharply, registering drops of up to 5%, which were then cut at the close to less than 2% for the most representative titles of sovereign debt. Thus, the country risk closed at 1,494 points, 87 units and more than 5% more than yesterday.
Although part of the dynamic responds to the contagion effect of the global climate, with the European stock markets that closed lower and the Dow Jones index that also fell at the opening to close slightly higher, the declines with which the financial market operated also respond to renewed political and economic doubts. Not only is it feared that the crisis in the president’s cabinet Javier Milei end up affecting its popularity, the only support so far for the progress of the fiscal adjustment, but also anxiety is growing – and also wear and tear – due to the slow progress in Congress of the Bases Law and the Fiscal Package, which would give greater support to the official plan.
The Government hopes that the Senate will vote favorably next week on the official initiatives that seek to free the economy and organize the public accounts, although with modifications so it will have to be discussed again in Deputies with the changes.
“The fall is a mix between political noise, due to possible laws that aim to increase spending promoted by the opposition (specifically pensions) and the settlement via ‘dollar’. blend‘(for exports) which is coming slower than expected,” said the economist Roberto Gerett.
The truth is that other factors also began to dent the previously robust enthusiasm of investors. The main one of them, the reserves. Although the settlement level is within normal standards, the expectation was higher and the peak dollar inflow typical of May has not yet been recorded. It is at that point where attention focuses on the official dollar and the exchange rate. crawling peg of barely 2% per month, which is probably considered insufficient incentive for liquidation.
”The expectation is that the crawling remains at 2% during June, and possibly also in July, seeking to consolidate the slowdown in inflation,” estimated AdCap Grupo Financiero, while Portfolio Personal Inversiones also pointed to reserves based on the possibilities that the Government will have to Pay the swap with China.
”Journalistic rumors that the government might have to repay the active tranche of the Chinese swap with reserves would not have been well received by Argentine assets,” PPI said.
News in development
