The moderate fall of the S & P Merval after the dialogue between Macri and Fernández; but bonds continued to collapse (-12%)

The overwhelming victory of the opposition in the internal elections left Macri, the preferred candidate of the markets, with little chance of being re-elected, which resulted in a collapse of investor and peso confidence, which could accelerate already very high inflation.

The dialogue between Macri and Fernández has somewhat rebadured markets, which they fear for their governance in the coming months, as the presidential elections will take place in October and the next president will take office only in December .

"The political approach suggests a possible tranquility, but it is only in a preliminary phase that we can stop the mbadive destruction of value generated by the aggressive auction of positions, particularly because of external funds. " An experienced economist has badyzed.

The losses of the day were caused by the actions of North gas transportation (-15.4%); Transener (-11.1%); and Edenor (-10.3%).

Macri announced before the market opening Wednesday several measures with which it seeks to mitigate the impact of the dollar's firing on the Argentines after the voluminous victory of the opposition at the polls.

But the dollar has increased its upward trend: it climbed 8.8% to $ 60.49 in the wholesale segment, despite the sale of $ 248 million by the BCRA. At the National Bank, the bill climbed to $ 63.

On the other hand, the local place was also conditioned by a sharp decline of nearly 3% of the main Wall Street indices. the US bond market indicator showed a higher risk of recession the day they met.Low economic data in Germany and China.

Country risk and obligations

Country risk, which measures JP.Morgan banking, rose 194 units to 1,935 basis points, its highest level since November 2008.

Operators agree that current country risk levels are similar to those faced when a government faces payment problems with its sovereign debt. In addition, there is a decrease in bank deposits in pesos, mainly in dollars, Market sources agreed.

Faced with this context, Major dollar bonds continued to find flat ground and recorded losses of up to 12%.

"In the current context, it seems appropriate to replace the existing positions in Argentine sovereign bonds in dollars with local legislation – Bonar 2024 and Discount Ley Argentina mainly – with sovereign bonds in accordance with New York legislation and at a level of low parity, "he said. Bridge Investment Bank.

He added that "the objective of this rebalancing is to obtain additional protection against foreign legislation, to gain nominal capital and to place you with a more defensive stance on low parity bonds".