The announcement of the new bilateral agreement between Argentina and the United States caused strong optimism in the markets
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The week ended with a wholesale dollar traded between $1,394 and $1,403, which meant a weekly drop of $12, marking its third consecutive week of declines. The exchange rate thus returns to values from early October, in a context of strong activity:
USD 597 million traded in spot transactions
USD 644 million in futures
Meanwhile, the retail rate also fell another $5, closing at $1,425 per unit.
Stock market optimism: Merval rose 3.8% in pesos (and 3.7% in dollars)
The Buenos Aires Stock Exchange once again showed outstanding performance. The S&P Merval rose 3.8% in pesos (and 3.7% in dollars), supported by the solid performance of stocks and bonds. The increase occurred in a context of growing confidence in the government's economic and trade policy, especially after the announcement of the bilateral agreement with the United States, which opens new opportunities for the export sector.
Las acciones exportadoras volaron hasta 26% en la Bolsa tras el acuerdo comercial con Estados Unidos
Export-oriented stocks led extraordinary gains
The general panel showed increases of over 20% in several companies, mainly those with an export profile, which reacted immediately to the news of the new trade agreement with Washington.
Among the strongest increases were:
San Miguel: +26.1% (and +19.9% in the following session)
Aluar: +13.4%, driven by the projected impact on foreign sales
Inversora Juramento: +13.4%, in line with the optimism of the agribusiness export sector
El bono colocado en junio por la provincia tiene un cupón anual del 9,5%
Investors assigned value to the expectation of higher external sales, better market access conditions, and a more predictable regulatory environment for export activity.
The agreement with the United States boosts growth expectations
The market interpreted the bilateral agreement as a strategic opportunity for the country:
Greater access for Argentine products
Direct stimulus to exportable production
More favorable business climate
Greater predictability for companies oriented toward external markets
The immediate reaction in the Stock Exchange confirms the positive outlook of the financial sector regarding the rapprochement with the United States, a key player for international trade and investment.
