La Derecha Diario Euphoric markets after the end of the restrictions: bonds and stocks rise up to 20% in the US
By mid-morning this Monday, Argentine stocks and bonds show double-digit increases
The removal of the currency control announced by the Government had an immediate and significant impact on the financial markets.
By mid-morning this Monday, Argentine stocks and bonds were showing double-digit increases, both on the New York Stock Exchange and the Buenos Aires Stock Exchange, in a clear show of investor support for the new economic phase.
Rally of Argentine ADRs on Wall Street
At 11:20 a.m., the ADRs (American Depositary Receipts) of Argentine companies on Wall Street were registering strong gains:
- Banco Supervielle: +20.7%
- Banco Macro: +19.5%
- Transportadora Gas del Sur: +18.9%
This early surge, even before the official opening of the local market, reflects the market's renewed confidence in the economic direction.
Meanwhile, the S&P Merval index climbed 4%, reaching 2,340,000 points, with widespread positive variations that set an optimistic tone for the day.
Dollar bonds also soar
Argentine public securities denominated in dollars, both Bonares and Globals, also showed a significant recovery, with an average increase of 8%. Among the most notable papers:
- AE38 (Bonar 2038): +11.6%
- GD35 (Global 2035): +10.5%
- AL35 (Bonar 2035): +10.4%
This behavior reflects the renewed interest of investors in Argentine assets, encouraged by a new economic context without currency control, which could facilitate capital inflow, reduce the exchange rate gap, and improve macroeconomic predictability.
A change of climate for the markets
The lifting of the currency control comes at a key moment, after weeks of high financial tension. The markets perceive this measure as a step toward the normalization of the exchange system, which could favor the attraction of investments and the appreciation of local assets.
"Behind the improvement in the BCRA's reserves are the decrease in inflation and poverty," said Federico Furiase, director of the Central Bank, in radio statements. According to the official, these factors are key to stabilizing the economy and creating a favorable environment for the markets.
With investors still alert to the full development of the day and the fine print of the new provisions, the initial response has been widely favorable, fueling expectations of a possible sustained recovery.
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