Buenos Aires stock market falls and country risk rises 4% before market downtrend

As well as the dollar appreciates against emerging currencies -More than 1% compared to the Brazilian real and the Argentine peso, the valuation of stocks and bonds shows a clear decrease. In the case of Argentina, the ADR of national companies which are traded on Wall Street they drop an average of 3.5%led by banks.

Banco Macro subtracts 7.5% in its price in dollars, while Galicia Group and the banks Supervielle and BBVA French They cite the loss between 1 and 3%.

L & # 39; s index S & P Merval ByMA (Argentine markets) Subtract 2.3% to 32,593 points.

AT Jorge Fedio, technical badyst Clave Bursátil, the Argentine stock market "is a striking example, the low slows down precisely for the prices so fallen in dollars, that it is not as easy to download ".

However, since Delphos Investment They warned that "doubts about the potential reaction of investors in an adverse scenario continue to make us think that the best advice, given the current risk / return ratio, is stay out of Argentine financial badets"

As for links, Bonar 2025 decreases 0.4% in dollars, while the Bonar 2024 drops 0.9%. The rate of return on these government securities is 16% annual in dollars on the secondary market.

The increase in the rate of return of Argentine sovereign bonds is reflected in bigger gap with North American issues. The price of 10-year US Treasury bonds is rising and the rate is rising to 2.4%. Therefore, the Country Risk from JP Morgan, who quantifies this difference, up 4.3% for Argentina, to 937 basis points.

China plans to impose tariffs to US products valued at USD 60,000 million, said Monday the Ministry of Finance of the Asian country. It is the response to the protectionist measures promoted by Washington that provoked a global trade conflict because of its Impact on the price of badets financial and basic products.

China will apply from June 1st new tariffs on US goods, by 25% for a total of 5,140 products. The United States intensified Friday the tariff war with China by increasing taxes on Chinese products valued at $ 200 billion.

What is the reason for the trade war? "There is a simple reason: in the last 30 years, the US trade deficit with China He has widened fiercely"he traced Miguel Ángel Boggiano, of the financial charter.

"In other words, it isChinese exports to the United States increase, while US exports to China are growing at a much slower pace, "he added.

In addition, lower prices of stocks and bonds Argentines canceled the favorable effect which could have been captured Monday by the details of the contributing companies which will integrate from May 29th the MSCI Index Emerging that motivated price improvement in the order of 10% in ADR dollars in the last two weeks.

"The incorporation of the country for MSCI The Global Standard Index involves inclusion of a dozen Argentine stocks of high and medium capitalization this indicator, which includes more than 1,200 companies from 24 countries, "said a report Search for traders.

"The the weighting would be 0.29% in the index and, according to JP Morgan bank, there would be a potential flow of about 1,200 million USD in ADR shares, "he said.