Bonds and stocks fall on Wall Street and country risk reaches 1900 points again

Argentine bonds and equities fell on Wall Street and country risk rose by more than 14% 1897 points at noon on Monday.

The local day off prevented this skid from impacting the price in dollars. On Friday, the currency closed at $ 55 in the wholesale segment and $ 58 in the banks, although futures for the December currency reach $ 79.5 per share.

he Bonar 24, which expires in five years, has fallen to 8.43%. Among equities, banks fell to 12.57% (Galicia) on Wall Street, while energy stocks such as Pampa Energia yielded 7.8%.

Friday afternoon, after the stock market, the rating agencies Fitch and Standard & Poor's (S & P) lowered the credit rating of the Argentine debt.

Fitch has put the bonds in CCC rating, B, which implies a concrete possibility of default. "The decline in Argentina's ratings reflects great political uncertainty following the August 11 primary elections, a severe tightening of financial conditions and an expected deterioration in the macroeconomic environment, which increases the risks of sovereign or sovereign default. government restructuring, a kind, "Fitch said.

For the S & P, the dollar against last week "has significantly weakened the already vulnerable financial profile of the sovereign". The rating agency has changed the rating from B to B- with "negative outlook".

Economist Florencia Galván, a financial markets badyst, said "there are still tensions and uncertainties about the local situation". He added: "On Saturday, we learned of Dujovne's resignation, the poor results of the PASS a week ago, the deterioration of our bond ratings (B to CCC Fitch and B to B- S & P) and the data on Inflation, released on Thursday, was a predictable decline today and a foretaste of what may happen tomorrow in the local market. "

An IMF technical mission is expected to arrive this week in Argentina to conduct the economic review before each disbursement. The multilateral agency has not yet officially confirmed the visit of Roberto Cardarelli, the Italian who heads the delegation.

The Fund has not yet decided on the latest measures or the change of government. Nor did it show any signs of continuity after the resignation of Nicolás Dujovne, who was his main interlocutor alongside the President of the Central Bank, Guido Sandleris. The IMF issued a statement immediately after each economic announcement by the Mauricio Macri government.

The IMF is expected to release a disbursement of US $ 5,400 million in mid-September. Argentina needs this money to meet its commitments in the face of deteriorating interest rates. Hernán Lacunza, now Minister of Finance, must now badume his responsibilities until the end of the year. renew 10 billion USD in Letesin dollars, of which about 70% is in the hands of private investors and only one third in the public sector.

Gustavo Neffa, director of research for traders added as a factor of uncertainty the statements of the presidential candidate of the Front of all Alberto Fernández to the newspaper Clarin, in an interview published Sunday. "The report of Alberto Fernández gives many interpretations to Clarinbecause he talked about sitting down (negotiating) one by one and it's synonymous with restructuring"Debt, he said.

"You have to sit down to discuss one by one, as we did with debt at the time.Do not forget that we have asked the bondholders to pay the bills. accepting a 75% takeoff and that it was a one-to-one discussion – a great job that Guillermo Nielsen did at the time, "said Fernandez in this interview.

Nielsen, one of the candidate's economic advisers, tried to relativize these remarks on Monday. "We want to avoid a situation of conflict with the bond creditors," he told the agency Bloomberg. "We do not plan to restructure the debt," he added.