On a key day for the market, Argentine stocks and bonds manage to recoverin the midst of the expectation of what will happen in the Senate with the Bases Law and supported by a overall mood improvement. So this noon The Buenos Aires stock market rebounds 2% and bonds advance more than 1%, but more driven by the increases in Wall Street than by the local situation.
This Wednesday, the inflation data for May in the United States was known, which was less than expected by the market: the interannual mark was 3.3% and monthly inflation was 0%. This gives margin so that the Federal Reserve accelerates its low rates, which in turn is good news for investing in variable income.
“Today the focus will be on the Federal Reserve meeting. The Fed is widely expected to keep its policy rate at 5.5%. However, the focus will be in the update of economic forecasts, which will provide information about the path waiting for members of the Federal Reserve for Monetary Policy and Economy Growth, “they explained in Balanz.
On Wall Street, the Nasdaq technology index rose 1.5%, followed by the S&P 500, which advanced 1.1%, and the Dow Jones, which improved 0.3%. In this context, the shares of Argentine companies that operate in that market are also trading in the green, although with some moderation. Bank papers are those that rise the most: with the Grupo Financiero Galicia in the lead, which presents an increase of almost 4%.
In the debt segment, the better international mood helps Argentine bonds. Global prices rise up to 1.3%but they fail to erase the reds that accumulated in the last two weeks. The country risk settles at 1,519 points.
The definition of the Base Law will finally be what sets the pulse of prices in the local market. “Today the main drivers of Argentine assets is the package of measures promoted by the current administration. A setback in the Senate would create an even more significant challenge with political, economic and social consequences that are difficult to foresee,” they warned in PPI.
On the exchange front, financial dollars move with disparity: on the street, blue falls to $1,290. In the stock market, cash with settlement also moves with a slight decrease of 0.2%; while the MEP dollar rises another 0.6% and reaches $1,282.
