Argentinian assets hit by Wall Street meltdown cut bullish streak
Stocks and bonds rise as new economy minister Sergio Massa promises better investment climate To reduce the budget deficit, strengthen the reserves of the BCRA, reduce the inflation rate and promote more trade.
,This is necessary for the rapid reduction of inflation, a situation like the one Argentina is going through. Low inflation is a necessary condition for complete stabilization of the economy. But the public and external accounts must also be stabilized, so that the public debt is permanent.says the economist Martin Rapetti.
“Reducing inflation does not guarantee growth. This does not guarantee that you will grow by 4% each year. It is a necessary condition, but there is still work to be done in terms of economic growth. You have to sort the variables. “Without stabilizing it is impossible, with stabilizing it is not enough,” he said.
On Monday, the Ministry of Economy will offer Treasury securities to seek funding of some 89,000 million pesos to meet the maturity of the “ledes” bonds.
“It is known that the problems persist and many problems, from the budget deficit to the production parameters, need to be solved. A lot is pending and a solid ammunition package is needed, with tantalizing and reassuring measures for this market that is just starting to warm up.Says Gonzalo Gavina of Portfolio Personal Inversions.
S&P Merval and ADR
On the stock exchange, the Merval index fell 0.92% to 141,459.95, after marking an all-time high of 143,246.85 units after the first trades. Merval has come to rack up a 9% improvement over the last four rounds, with a consistent record at every close. In the leading panel, the biggest drop concerns Cresud (-5.5%) and the main increase concerns Alur (+1.2%).
Shares of Argentine companies listed on Wall Street closed with the most losses on Wall Street due to the collapse of major indexes. The Dow Jones fell 3%, the S&P 500 3.4% and the Nasdaq 3.9%. Globant (-6.5%), Cressud (-5.7%) and Ternium (-4.9) led the decline on the New York Stock Exchange. The biggest increase was for Banco Macro (+2%).
US Federal Reserve Chairman Jerome Powell said the Northern giant’s economy will need tight monetary policy “for some time”. Before inflation is brought under control, which will mean slower growth, a weaker job market and ‘some pain’ for homes and businesses, he warns There’s no quick fix for soaring prices,