Wednesday , February 8 2023

Risk of land on the road to the stratosphere Indicates …


The risk of the land does not calm down. The JP Morgan indicator is closed at 821 points. It grew by 17 units. This is the highest level since December 16, 2014. The rescue of the International Monetary Fund was not enough to calm the markets. It seems that monetary policy of zero-emission Central Bank is also not effective in their encouragement. Investors are losing Argentine bonds in a hurry and without a break. Long-term state securities have already lost nearly 30 percent of their value in the year and offer a yield of more than 14 percent.

The international financial climate is more hostile, but the economies in the region are not punished to the same extent as Argentina. The country already has the second most important risk in Latin America. Podium is held by Venezuela, a society that is undergoing economic collapse, threats from the United States invasion, living for months in a hyperinflationary situation and for several years facing a sharp decline in gross domestic product.

The neighbors of Argentina have a country's risk level that is up to four times smaller than Argentine. The indicator in Chile is 157 points, in Uruguay 199 units and in Brazil 265. These countries had almost the identical country risk at the beginning of 2018. In Argentina, on the other hand, the indicator went from 350 to 821 points, an increase of 134 by countries. one in twelve months. In December, the index rose by 16 percent. Investors abroad sell their bonds for various reasons. Argentina has high inflation, it is unclear whether it will be able to fulfill its fiscal policy, monetary strategy moves in an unstable balance due to the accumulation of liabilities, the interest rate in domestic currency is close to 60 percent, and the economy drops almost 3 percent. points.

These problems show an economy with a significant disorder, in which the other fronts of uncertainty could be added in the coming months. Elections in 2019 are one of the factors that cause tension. The tendency of investors in the election years is to adjust their assets, relieve risky financial instruments and wait for details of the new administration. This local element can also be added to the disadvantage of global investors in the development of the stock market of developed countries. Stock markets in the United States face December for forgetting. The decline in US stocks so far this month is highest in the same period since the 30-day crisis. Last week it lost 8.4 percent. It was the worst fall in 10 years.

Porta's bag did not manage to escape from instability. A decrease of 2.7 percent was recorded in the day. A fall of 8.5 percent is on the weekend. Banks had some of the worst stock. Supervielle dropped 5.6%, while Banco Frances fell by 5.3%, Galicia fell 4.2% and Banco Macro 3.3%. Other assets with a sharp fall were Mirgor (-4.5%), Petrobras (-4.1%) and Comercial del Plata (-3.3%). State securities also recorded significant losses. Bonar from 2024 achieved a 2.2% reduction. Argentina 2037 fell 1.7 percent. The pair in foreign currency fell by 1.7, and Bonar in 2020 by 1.4. Sales of these bonds have intensified in recent days and prices have fallen.

The dollar, despite financial instability, showed peace. He fell 2 cents from the previous day and accumulated a fall of 31 cent from the middle of the week. The wholesale rate was 37.98 pesos, which is 10 cents less. The quotation begins to approach the floor of the stock market, which is already at 36.77 pesos. In October, when a new monetary strategy was launched, the group was 34 pesos. It is adjusted to a monthly coefficient of 3 percent.

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