Resignations from Alberto Fernández’s cabinet: how the market reacted to the government split

The accumulation of resignations within the government marked the economic day. On Wednesday morning, the market was worried about digesting the August inflation data and was speculating on the announcements the executive would make to revive the consumption and try to win votes before the November elections.

At mid-wheel, however, attention shifted and news of Cabinet resignations mounted. Investors then began to interpret how the news might. Some believe that this is a staging of politics; others are inclined to think that there will indeed be changes in the team of presidential collaborators.

Among the multiple versions that circulated Wednesday afternoon, many stressed that the massive resignations seek to put pressure on the Minister of the Economy. Martin guzman Do the same thing. In the market, they say it wouldn’t be good news. “Inside the Cabinet, it is quite well seen and This is the only one that it seems the market can relate to“said an operator consulted by TN.com.ar in reference to the owner of the Palacio de Hacienda.

In this environment, asset prices have evolved. At market close, stocks were showing red numbers in the local market, where the S&P index Merval fell 0.6%. The main victims of the day were for Edenor (-5.9%), Grupo Supervielle (-4%), BBVA (-2.7%), Banco Macro (-2.6%) and Sociedad Comercial del Plata ( 2.3%).

In New York, the results have been mixed, although the majority of victims are among local newspapers. The ADR losses exceed 5%, also directed by Edenor. Thus, they deepened the negative trend on Tuesday and continue to reduce the gains they made on the Monday after STEP 2021.

The obligations, for their part, they showed a little more optimism. The foreign legal dollar securities (Global) increased by more than 1%, while their peers issued under local law suffered slight reductions on Wednesday. The countries at risk added 11 units to the wheel and reached 1507 points this Wednesday.

“The the debt market reacted well to the news policies of the day, since having started to offer up to 30 cents early in the morning, they found themselves with increases of up to 40 cents on average throughout the curve, ”summarized Grupo SBS. And to add: “On the other hand, the bonds in pesos adjustable by CER operated were offered in all their maturities, with decreases of 0.25% on average. Finally, the sovereign debt linked to the dollar has returned to resume operations ”.

In the forex market, meanwhile, the blue dollar regained lost ground after STEP 2021 and returned to $ 185, the value of the Friday before the election. The parallel price, which had started the day higher, confirmed the trend during the afternoon as quits escalated.

On the official market side, the exchange rate of the Banco Nación fluctuated barely 25 cents – as is usually the case every week – and in the wholesale segment the The Central Bank was able to buy an additional $ 15 million. However, market sources said the agency stepped in again with future dollar sales, which operated on the upside due to increased demand for coverage.