The global financial market climate improved after the volatility caused by the trade war, which had a positive impact on Argentine assets. The S&P Merval stocks rebounded strongly and dollar-denominated bonds saw gains for the third consecutive day. The country risk decreased to nearly 700 points.
According to J.P. Morgan, the country risk dropped by around 8%, reaching 713 basis points, its lowest level in two weeks. Dollar-denominated securities experienced gains of up to 4%, led by Global 2041, followed by Bonar 2038, Global 2035, and Bonar 2041.
The "imminent" announcement of the submission to Congress of the project to close a new agreement with the International Monetary Fund also positively influenced prices. According to estimates from the Swiss bank UBS, the IMF could provide Argentina with assistance of around US$ 20 billion. Additionally, a positive report from Bank of America (BofA) on Argentine sovereign debt also contributed to this favorable scenario.
Regarding the project agreement with the IMF, the submission to Congress is expected to focus on the authorization to negotiate with the organization, without detailing the specific aspects of the agreement. In this context, the bond market reflected encouraging signs with strong gains in dollar-denominated securities.
In terms of stock market activity, the S&P Merval increased by 3.8% to 2,290,049 points on the leading panel, and in dollars it rose by 2.4% to 1,850 points, mainly driven by utility companies. Stocks also experienced strong gains, with Transener up 14%, Metrogas 12.1%, and BYMA 12.3%.
On Wall Street, Argentine papers advanced nearly 10%, led by Bioceres, Grupo Supervielle, and Telecom.
