Low Inflation Boosts Markets in Argentina

Lower than expected inflation in the U.S. improves the international climate, reflected in the rise of stocks and bonds in Argentina and Buenos Aires.


Low Inflation Boosts Markets in Argentina

In the financial markets, lower-than-expected inflation in the United States generated a significant rebound, which has positively impacted Argentina's stocks and bonds that are trading higher. The S&P Merval and Argentine stocks traded on Wall Street are taking advantage of this more favorable international climate.

The reported inflation in February in the United States was 0.2%, below analysts' predictions, which has improved the mood of investors who were concerned about Donald Trump's tariff policies and fears of a recession. On the Buenos Aires Stock Exchange, the leading index of BYMA has risen by 4.4%, reaching 2,254,420 units, while in dollars it has again surpassed 1,800 points, reaching 1,835.

Stocks on the leading panel have increased by up to 7.7%, led by Central Puerto, followed by Transportadora de Gas del Sur (+6.7%), Grupo Supervielle (+6.3%), Pampa Energía (+6.2%), and BBVA (+6.1%). On Wall Street, the stocks that advanced the most are those of Transportadora de Gas del Sur (+6.9%), Grupo Supervielle (+6.9%), Central Puerto (+7.6%), BBVA (+6.4%), Pampa Energía (+6.3%), Grupo Financiero Galicia (+6.9%), and IRSA (+5.7%).

Locally, it was reported that inflation in the City of Buenos Aires significantly slowed down in February, standing at 2.1%, one percentage point below the figure recorded in January. This data anticipates the national Consumer Price Index (CPI) that will be released by INDEC on Friday, the 14th. Meanwhile, dollar-denominated bonds are trading mixed after a strong start.

Globally, bonds have experienced an increase of up to 0.6%, led by the Global 2038, followed by Global 2035, 2029, and 2041 (+0.2%). On the other hand, most Bonares have recorded declines, mainly the Bonar 2035 and 2038 (-0.2%). In this context, country risk has decreased by 5 units, standing at 718 basis points according to JP Morgan's measurement.