Argentine assets at the local level and abroad closed with ups and downs, after learning of the FED’s rate increase decision
By Marcos Phillip
03/05/2023 – 18,28hs
He Merval it fell 1.92% and settled at 289,953.89 basis points, with which it operated in the red for the second consecutive session. Meanwhile, in hard currency it traded at 642 units. In the external plaza, the ADRs of Argentine companies that operate abroad ended with general falls of up to 3.1%, led by Transportadora Gas del Sur, in a round in which the main US shares traded with negative results.
In the fixed income segment, the sovereign dollar bonds under foreign legislation they registered the majority of increases throughout the entire curve up to 2.90%, led by the Global 38while the titles in pesos with CER adjustment marked ups and downs.
In the peso market, tax collection registered an increase of 90.2% year-on-year, below the inflation accumulated in the previous 12 months (estimated at 107.1% year-on-year). In this way, it marked the fourth consecutive drop in real terms (-8.2% year-on-year), as a result of the slowdown in economic activity and the impact of the drought that caused a drop in export duties, which decreased by 74, 9% year-on-year in real terms.
From Portfolio Personal Investors they pointed out that “April maintained the trend of the previous months, in which it was observed that the collapse of export duties explained almost all of the retraction” and added that the rest of the main taxes also exhibited relevant falls , “which justifies that collection without withholdings has also sunk in real terms.”
What happens in the markets of the world
Wall Street registered negative results, after learning that the United States Federal Reserve resolved today to raise its reference interest rate by 25 basis points and set it in a range between 5% and 5.25%, while admitting that “inflation is still high”.
Following the Federal Open Market Committee (FOMC) meeting, the Fed noted that “economic activity expanded at a moderate pace in the first quarter; job creation has been strong in recent months and the unemployment rate has remained low; inflation remains high.
The Buenos Aires Stock Market extends the falls and sovereign bonds in dollars operate with profits
In a subsequent press conference, Fed Chairman Jerome Powell argued that “if the Fed members are correct, it may take some time for rate cuts to look plausible.”
According to Powell, “we in the committee are of the opinion that inflation is going to come down not so fast; it will take some time, and in that world, if that forecast is correct in general terms, it would not be appropriate to reduce rates and we will not do it.” .
Wall Street
The main Wall Street indices traded with results in the red. Thus, the S&P 500 fell 0.704%; the industrialist Dow Jones lost 0.80%; and the technological Nasdaq fell 0.46%.
Merval
The Merval registered a fall of 1.92%. Thus, the falls of the leading actions were registered by Aluar (-6.36%); Transportadora Gas del Norte (-5.60%); and BBVA Argentina (-5.20%).
ADRs
On Wall Street, the papers of Argentine firms closed the day with negative results. Thus, the losses corresponded to Transportadora Gas del Sur (-3.1%); BBVA Argentina (-2.4%); and Irsa (-2.1%).
bonds
Sovereign bonds in dollars under foreign legislation recorded the majority of increases throughout the entire curve to 2.90%, led by the Global 38, while bonds in pesos with CER adjustment marked ups and downs.
Risk country
The country risk is located around 2,623 basis points.
