Country Risk Hits One-Month Low
Argentina's country risk dropped seven points on Friday to 484, its lowest level in a month, according to the JP Morgan indicator. The last time it was near this level was on August 20, when it reached 480. The improvement occurred as Argentine dollar bonds rose up to 0.6% abroad, though Argentine company shares on Wall Street mostly traded lower. The JP Morgan indicator is watched by investors as a gauge of perceived risk on a country's debt.[S1][S2]
In the local market, the S&P Merval fell 2% in pesos and 1.8% in dollars, measured at the contado con liquidación rate. Among Argentine stocks in New York, Loma Negra dropped 3.5%, BBVA fell 3.2%, and Transportadora de Gas del Sur also declined 3.2%. The divergence between bonds and equities marked the session.[S1][S2]
Dollar and Oil Movements
The official dollar fell five pesos to close at 1,530 for sale at Banco Nación. The MEP dollar traded at 1,533.49, while the contado con liquidación rate stood at 1,605.66. In energy markets, oil again surpassed $100 per barrel, though it fell about 3% from its previous high. The prior day, crude had exceeded $107, a level not seen since late May, amid renewed concerns over the situation in the Middle East. Brent ended at $105, down 2.6%, and WTI settled around $100, retreating more than 2%.[S1][S2]
US Inflation and Treasury Debt Auction
International markets were shaped by US inflation data, which showed an acceleration from July to 0.4% in August. The elevated reading of the consumer price index triggered a positive reaction on Wall Street but continued to pressure dollar rates. The market already anticipates a rate hike at next week's Federal Reserve meeting. Domestically, investors also focused on the Treasury's debt auction, where the government seeks to roll over 8.1 trillion pesos in maturities, mainly in capitalizable bills and a dual bond. The operation became a key focus of the Argentine market during the day.[S1][S2]
