Country Risk Extended Its Advance and Reached 566 Points

Argentine assets closed the trading session with losses, affected by a less favorable international environment for risk investments. The country risk calculated by JP Morgan increased 12 points and reached 566 units, its highest level since April 28.

Sovereign debt in dollars recorded an average decline of 1.1% and accumulated eight consecutive trading sessions in retreat. The movement occurred as U.S. Treasury bond yields rose to levels not seen since 2007, with the ten-year rate around 5.1% annually.

In the stock market, the S&P Merval lost 0.9% and closed at 2,960,546 points. Shares and ADRs of Argentine companies traded mostly lower in New York, with a decline close to 3% for banking stocks. YPF, meanwhile, advanced 1.3% and closed at USD 54.07.

External pressure was also reflected in the foreign exchange market. The wholesale dollar rose $2, equivalent to 0.1%, and ended at $1,516, after reaching $1,518 during the morning. Trading volume fell 21% and stood at USD 481 million.

The Central Bank purchased only USD 6 million in the foreign exchange market, while international reserves decreased by nearly USD 500 million. In parallel, the monetary authority set $1,910.11 as the upper limit of the exchange rate band, placing the wholesale exchange rate $394.11, or 26%, below that ceiling.

On the international front, Brent rebounded 4.4% and reached USD 103.70 per barrel for November delivery contracts. The oil recovery coincided with new geopolitical tensions and a negative session for Wall Street, whose main indices declined between 0.7% and 1.1%.