ADRs fall to 10.5% and dollar bonds fall to 3.6%

ADRs fall to 10.5% and dollar bonds fall to 3.6%

in the local arena, The S&P Merval lost 3.62% to 144,060.20 units after falling more than 4% in the first banknotes and rising 1.7% on Thursday. This indicator recorded a historical maximum intraday value of 150971.41 points at the beginning of the week.

A short-term stop can be understood if the market wants to continue the momentum in search of regaining groundSaid Lionel Pocolo of Rafa Pursatel.

Rising inflation hitting Latin America’s third-largest economy, which is expected to exceed 100% this year, exchange rate pressures and high fiscal deficits, create doubts about the immediate future.

Despite the massive influx of foreign currency from the agricultural export sector, the market remains cautious when it comes to identifying investments due to inflation expectations for this year which could reach 100%.

“We are immersed in an inflationary stagnation that is hard to break (…) the official dollar can no longer be left behind in the face of inflation,” Keep up the economist Federico Furiase. Given the anticipation of devaluation, “There will be a need for a stabilization program (…) that is difficult in the social context in which we live.”

The day after the Fed’s rate decision saw a volatile day on Wall Street as the S&P500 lost 0.8%, but the Nasdaq suffered the most, losing 1.4%.

Bonds and State Risks

In the fixed income sector, and like Argentinian stocks in New York, Sovereign dollar bonds Work on injuries led Ponar 2030 (-3.6%), Global 2030 (-3.5%), Ponar 2029 (-3.2%).

In this sense, country risk is measured by JPMorgan It advanced 1.2% to 2,463 basis points, its highest level in a month.

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