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Argentina

Argentina's country risk falls 67 basis points to 872 on Wall Street gains

The drop in sovereign risk came from global market moves rather than local policy, a distinction relevant to investors pricing Argentine debt.

Photo: 24EcoNews

What happened

Argentina's country risk fell 67 basis points to 872 on Monday, its first significant decline in several weeks. 24EcoNews The drop was attributed to a rally on Wall Street, with the Nasdaq up 2.7 per cent and the S&P 500 up 2.3 per cent. 24EcoNews Oil fell about 6 per cent, with Brent dropping to USD 92 per barrel after comments from President Donald Trump that eased expectations of further strikes against Iran. 24EcoNews Argentine Global bonds rose an average of 1.8 per cent, while Grupo Galicia gained 3.3 per cent and Mercado Libre 1.5 per cent in New York. 24EcoNews YPF shares fell 1.6 per cent to USD 38.03 because of the lower oil price. 24EcoNews

Around it

The analysis states the move was not caused by any change in local economic policy or a specific vote of confidence in the government's program. 24EcoNews On the previous day, the Merval index slipped 0.35 per cent and the peso was effectively flat against the dollar at 1,545, according to market data. robomacro.com Pope Leo XIV publicly criticized the government's austerity program during a visit to Argentina, which one market note said adds political risk to the fiscal consolidation outlook. robomacro.com

Sources

  1. 24EcoNewsArgentina's Sovereign Risk Rebounds on Wall Street Gains, Not Local Reforms
  2. robomacro.comPope Rebukes Milei as Peso Holds Steady

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