Country risk again exceeded 1000 points and reached its maximum value in Mauricio Macri's government

The

country risk

again exceeded the 1000 points and reached a new maximum for the government of

Mauricio Macri

. After 17.13, the indicator was at 1013 basis points, or 2.8% higher than the last value of last week.

The previous country risk record during Macri's management was April 24th. That day, he reached 1006 points, but then closed at 935 points.

Today's rise occurs in a serene exchange scenario, with a
dollar which rose 9 cents (0.2%) today and closed at $ 44.88 in the wholesale segment. In the retail sector, it closed at $ 46.12, two cents more than last Friday's price.

The

Merval

decreased by 0.31%. The newspapers that won the most were Tenaris (3.71%) and Petrobras (2.39%). Those who have lost the most in the meantime are Central Puerto (4.18%) and Banco Supervielle (2.77%).

At the moment of closing the wheel

Wall Street

Argentine stocks showed mixed trends. Tenaris (4.12%) and Ternium (3.37%) are among the most advanced. Cresud (4.11%) and Central Puerto (4.09%) are among those who have fallen the most.

Country risk, an index created by JP Morgan and comparing each country's long-term bond yields relative to the US, began the morning under 1000 points, but after 13, it surpbaded that hurdle. The decline in the value of Argentine debt securities explains the rise in this indicator.

The international scene is not the calmest. Diego Martínez Burzaco, Director of MB Inversiones, highlighted three key points. The first is the persistent trade tension between the United States and China. The second, the decision of

Donald Trump

to impose, as of June 10, a 5% tariff on all Mexican products "until illegal immigration" ceases. The third, the threat of antitrust investigations on technology companies such as Google and Facebook, has led the US stock market to lower the price of the shares of these companies.

"If trade tensions actually tend towards a lower-than-expected global trade resolution, it means a decline in sales, a decline in production, and a slowdown in the global economy," said Martin Kalos, director of the World Trade Organization. EPYCA Consultores. This has a direct impact on productive enterprises, but also on financial speculation, due to the declining demand for
basic products and its impact on the price.

"This brings financial capital to seek refuge in safer badets, and there is a capital outflow in emerging markets, which has a direct effect on Argentina," he said.

"I'm not so surprised to see the pressure on bonds and country risk in Argentina, with so polarized elections and such an open definition, these are obvious risks perceived by any Argentine bondholder", summed up Martínez Burzaco.

According to Matías Rajnerman, chief economist at Ecolatina, the outlook is not optimistic. "We do not anticipate that the country risk will decline much in the medium term, regardless of the winner of the elections: the lack of growth expectations limits the potential for improving country risk", he explained.

In addition, he added that the index "affects the sustainability of debt in two ways." On the one hand, "this reflects the cost of going out on private credit markets to finance the maturities of liabilities, and at these country risk levels, it's impossible to get out." On the other hand, a high country risk "would strengthen the dollar in the medium term" and, since three-quarters of the debt is denominated in hard currency and government revenues are mainly denominated in pesos ", in a scenario exchange rate tensions, debt sustainability could open questions, "Rajnerman concluded.