Argentine country risk plummeted almost 10% and fell to its lowest level in months

Argentina recorded a strong improvement in its financial indicators this Wednesday after the country's risk plummeted by almost 10% in operations prior to the local opening, driven by the climate of global optimism generated after the ceasefire announced by Donald Trump in the conflict with Iran.

The indicator developed by JPMorgan Chase fell from 610 basis points at the previous close to 551 units, marking a drop of 9.67% and reaching its lowest level in several months.

Argentine bonds flew on Wall Street and reinforced the decline in country risk. Parallel to the

collapse of the EMBI, Argentine sovereign bonds traded

on Wall Street showed strong increases.

Argentine government bonds rose between 1.2% and 2.4%, reflecting a renewed appetite among investors for emerging assets and especially for Argentine debt.

The improvement occurs in a context where the market continues to reward the signs of macroeconomic stabilization promoted by the government of Javier Milei.

Trump's agreement with Iran sparked global euphoria in markets. The rise in

Argentine assets coincided with a day of strong recovery in international markets following the announcement of a two-week bilateral ceasefire between the United States

and Iran.

Trump announced the decision through Truth Social, where he stated:

“I agree to suspend bombing and attacks on Iran for a period of two

weeks.”

The news was later confirmed by Iranian Foreign Minister Abbas Araghchi, who assured that Tehran would also stop its military operations as long as US attacks cease.

The drop in oil triggered financial optimism

.

One of the main immediate effects of the agreement was the partial reopening of the Strait of Hormuz, key

to global energy trade.

This caused a sharp drop in the international price of oil: The

Brent barrel

fell by almost 14%.

WTI declined by around 16%.

The drop in crude oil eased global inflationary fears and triggered a buying wave in stock markets: The S&P 500 rose 2.7%

.

The Nasdaq-100 climbed 3.5%.

The Dow Jones Industrial Average rose 2.5%.

The market is betting on a further improvement for Argentina

Financial analysts argue that the fall in oil and geopolitical relaxation could open the door to future rate cuts by the United States Federal Reserve, which

would further favor emerging markets such as Argentina.

In this context, the strong compression of country risk appears as another sign of a recovery in investment confidence in the Argentine economy.

The fall in the indicator also strengthens expectations that the Government can move towards a possible return to international credit markets if the trend continues.