Financial week: Wall Street printed its negative stamp on Argentine stocks and bonds

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Financial week: Wall Street printed its negative stamp on Argentine stocks and bonds

In the international markets there are fears of an eventual economic recession.

US stocks closed a volatile session on Friday little changed on Friday but still posted sharp weekly losses. The S&P 500 posted its longest weekly losing streak since the dotcom bubble burst in 2001as concerns about tighter monetary policy and the resilience of the US economy and corporate profits to inflation resurfaced.

The Industrial Dow Jones accumulated a loss of 2.9% on five wheels; the S&P cut 3%while the technology panel Nasdaq subtracted 3.8 percent.

On Wall Street they anticipate that the Federal Reserve will raise interest rates by 50 basis points in June and July

The Dow Jones closed its eighth consecutive weekly decline, the longest since 1932during the Great Depression. And on a weekly balance, the current losing streak for New York stocks is the deepest since 2001. Traders assume the US central bank will raise interest rates by 50 basis points in June and July.

The heavy 2022 losses on the back of concerns about the resilience of corporate earnings in the face of inflation resurfaced this week. In the TThe course of 2022, the Nasdaq index sinks 28%, the S&P 500, 18%and the Dow Jones Industrials, 14 percent.

Midway through Friday’s session, the S&P 500 fell 20% since its record closing on January 3 of this year, which placed it, according to the opinion of analysts, in the technical zone of “bear market”what could be the prologue of more sessions in red.

Although Argentine stocks with dignity resisted the selling wave that spread abroad, the S&P Merval of the Buenos Aires Stock Exchange ended the weekly balance with a 0.8% drop in pesosto 88,118 points, and a marginal profit of 0.1% in dollarsbased on the implied “cash with settlement” parity in ADRs and shares traded in New York dollars.

Source: Rava Bursátil- Prices in dollars.
Source: Rava Bursátil- Prices in dollars.

bonuses Global in dollars, issued with the debt swap, lost 1.5% on average weekly, although they exhibited a slight rebound in prices since Wednesday, because while the holiday in Argentina for the National Census passed, they recorded their lowest price on Wall Street since they went on the market in September 2020. Some issues of the swap came to offer returns above 30% per year, considered “default”.

The risk country of JP Morgan, in the 1,945 points for Argentina, it climbed 50 units in the week, very close to its post-restructuring record of March 8.

IEB Group (Invest in the Stock Market) pointed out that “the concern of a possible recession in the USits current contractionary monetary policy, and a prolongation and expansion of the China lockdowns remain a headwind for emerging debt. They also pointed out that “the debt hard dollar Argentina has not been immune to the international context, showing a strong correlation with emerging debt in recent weeks. Although the international context could continue to be adverse, we believe that bonds hard dollar Argentinians could be defensive since they are at a level close to what is considered in the market as their recovery value”.

For its part, Dario Diazpartner of Fidem Partners, expressed that “considering the national economic context, which in addition to the local problems add international turbulenceIt makes companies have to sharpen their financial strategies with income in pesos that lose value due to the effect of devaluation and inflation in companies.”

Díaz added that “although there is no specific recipe and each strategy depends on the company’s situation, there are several options that must be analyzed. One of the simplest is invest surpluses in the financial marketthere are options of titles linked to the dollar, or inflation”, while “among the industrial companies or importers, the stock investment it is a habitual strategy to protect value”.

The BCRA accentuated the purchase of foreign currency

The Central Bank added net purchases for about USD 210 million in the wholesale market, to improve the performance of May to a total of USD 770 million, the largest result since the same month last year.

With a lot of volatility, the free dollar concluded the week with a minimum profit of 50 cents, to be traded on Friday at $204 for sale. In May, the currency rises $3.50 or 1.7%, although it remains below $208, the price at which it ended 2021.

The “blue” dollar was like this again below the “solidarity” dollarwhich in the average bank was offered at $204.46 to the public.

Also, the dollar wholesaler in $118.48posted a gain of 1.05 pesos or 0.9% throughout the week, even at a rate of appreciation lagging behind domestic inflation.

KEEP READING:

Wall Street falls sharply again and completes its most negative week since 2001
The “little machine” accelerates in 2022: the BCRA has already transferred almost $380,000 million to the Treasury and the IMF’s goal is complicated
The euro is close to parity with the dollar for the first time in 20 years: what are the implications?

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