Argentine shares show gains again this Thursday, in a business session that is far from easy given the significant falls in Wall Street indices, after a report on the North American labor market was known.
Markets: the Argentine stock market returned to the level of 200,000 points and gained 43% in dollars in 2022
The panel of leading shares rose 1.4% in the last operating session of the year, at 202,085 points. In pesos, the panel of leading shares rose 142% annually
The S&P Merval of the Buenos Aires Stock Exchange gains 1.4%, to 203,800 points at 2:00 p.m., close to its intraday record of 208,209 units reached on Monday’s session. Energy and financial stocks led purchases as a hedge against inflation and devaluation.
Gains spread among ADRs and Argentine shares traded in dollars on Wall Street, led by YPF, with 5.7%, Banco Macro (+5.2%) and Transportadora Gas del Sur, with 4.2%while on the losing side stood out Globant (-7%).
Markets: the Argentine stock market resumed its rise after a brilliant 2022
The S&P Merval rose 2.5% to 207,054 points. The leading panel comes from earning 43% in dollars and 142% in pesos last year. A holiday in the US reduced the volume of business
“Our bet is that the rally will continue to be driven by the elections,” said Portfolio Personal Inversiones. “Regarding the variations that guaranteed the advance of the index, a predominantly green panel stands out,” they added.
The economist Gustavo Ber commented that Argentine stocks “continue to resist facing a healthy correction by way of rest and consolidation after the strong increases that accumulated during 2022.”
Financial day: Argentina’s dollar bonds rose 3% before coupon payments
In January, Global bonds rose more than 5% on Wall Street. The country risk yielded below 2,100 points. On January 7, the Government will face payments for USD 1,018 million. The S&P Merval gained 1.4% after the Fed minutes were released
Bonds traded on the Mercado Abierto Electrónico (MAE) averaged an improvement of 0.6% over their average in pesos. JP Morgan’s country risk, which measures the US Treasury bond rate differential with its emerging peers, reaches 2,118 basis points.
The Ministry of Economy managed this week to reschedule payments this week for some 3 trillion pesos -some USD 16,820 million- during the first quarter of the year, after an operation with high bank participation, where it extended payment terms between April 2024 and February 2024 .
Wall Street indices are operating with losses of more than 1%, after it became known that the US Federal Reserve considers that it will not be “appropriate” to cut interest rates this year with inflation that remains high, according to extracts from the minutes of their last meeting published this Wednesday.
“No participant (in the December Monetary Policy meeting) anticipates that it may be appropriate to start reducing interest rates in 2023,” these documents indicated, released a few weeks after the appointment in which the Fed raised its reference rates in half a percentage point, at 4.25-4.50% per year.
Wall Street resumes cautious tone, after other minutes hawkish of the Fed to which are added more signs of strength in the labor market awaiting tomorrow the payrollsdespite which domestic assets -contrary to global appetite- continue to be sustained”, added Gustavo Ber.
The US ADP employment report showed a much stronger-than-expected increase in private employment in December, while another report showed weekly jobless claims fell last week.
The reports came a day after data showed a moderate drop in job offers in the United States, in mounting evidence that the labor market remains tight.
A strong labor market has been a concern for markets hit by rising borrowing costs, as it gives the Federal Reserve a reason to raise rates for longer than expected this year.
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