On country risk rose again to 829 points, remaining at the highest levels in four years, while the roles of Argentine companies suffered heavy losses at Wall Street on pre-Christmas. Faced with this scenario, the economist Ismael Bermúdez He spoke with The Naughty about the impact generated by JP Morgan's alarming indicator in the Argentine economy.
"The increase in the country's risk means it increases Argentina's funding costs and is therefore virtually prevented from receiving international loans, because taking such a loan or comparing the debt will be a very large and very harmful rate for the country." Explain specialist .
"The influence that logically maintains the country is very, very strong, and what it is indicating is that it has a closed international loan," he added in the statements of the media. Asked if the country's risk falls on private investment, Bermudez noted that "it is interrupted even before the last increase, which emphasizes the alienation, especially all types of investment, including the direct channel without financial investment." It's a tremendous consequence that this is that Argentina must pay an interest rate above the rate of US bonds and this is a direct consequence, "he said.
After several analysts pointed out that the escalation of the country's risk corresponds with a political factor, especially the polarization between Mauricio Macrie and Kristina Kirchner, for Bermudez that figure has risen to the margin of that crack. "It is not a consequence of the fact that there are these two possible candidates for the elections, it is much earlier than the election question. We had that in other possibilities, we had it in September and we had nothing to do with the issue of the election community," he said from his perspective point.
In Argentina, financial markets did not work on Monday, as it was a non-working day, but overseas local funds were cited in the middle of a worrying day for major foreign markets. .
At the local level, the country's risk prepared by JP Morgan once again included warning lights, recording an increase of 0.9% and an approximation of 830 points. Driven by the distrust of investors towards Argentina, the indicator was at its highest level in the last four years. So far this year, the index has accumulated an increase of close to 137%, and in the last month of 2018, the increase was around 18%.
On Wall Street, the Argentine actions could not avoid a new negative trend that draws the main indicators of that reference market. Adr's local companies fell almost 10%, as is the case with Mercado Libre, while those of Supervielle fell 6.6%; Pump energy, 5.9%; and Banco Frances, 3.5%.
This trend took place amid a very negative day on the New York Stock Exchange, which again fell again after it spotted its worst week of 2008 on the market hit by falling oil prices and difficulties in Washington.
According to definitive closing results, the stock market index, the Dow Jones Industrial Average, lost 2.91% to complete at 21,792.20 points, the lowest since September 2017, and the Nasdaq index, with a strong imprint technologically, gave 2 , 21%, to close to 6,192.92 points. The continued index of S & P 500 fell by 2.71% and ended at 2.351.10 points, the lowest level since April 2017.