Investors on alert for possible financial storm: Argentine actions suffer

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In addition to the uncertainty of the pandemic, there is now a latent threat of a new trade war between the world’s two greatest powers

Although in Argentina today is a holiday, the actions of local companies listed on Wall Street had no respite and kept pace with the global market, in which the world’s main indexes fell with threats from President Donald Trump to set rates to imports from China in retaliation for the coronavirus pandemic.

On this day, the main New York indexes turned red as tensions between the United States and China increased. President Donald Trump, for whom the covid-19 originated in a laboratory in Wuhan, is considering new tariffs on the country’s products.

The economic outlook is not encouraging at all: in addition to the uncertainty of the pandemic, there is now a latent threat of a new trade war between the world’s two greatest powers.

The Dow Jones fell more than 2.5% and fell to 23,700 points. Of all the selective values, only Walmart managed to avoid losses in the middle of the session.

In the case of the S&P 500 and Nasdaq, the declines are more pronounced. The first yields about 3%, while the selective one where the country’s main technology companies are grouped falls more than 3.4%.

This led to companies such as Apple, which had a sharp slowdown in the growth of its quarterly income and is not in a position to foresee what will come in the coming months for the first time in years due to the uncertainty generated by the pandemic.

Another of the values ​​that collapses this Friday is Tesla. After its founder, Elon Musk, has claimed that the price of the company’s titles “is too high,” they deflate more than 10%.

On the rise side, the rebound noted by Liberty Global and Telefónica due to the possible merger of their subsidiaries in the United Kingdom stands out, reports Bloomberg. The ADRs of the Spanish operator rebound 5%, while Liberty shares gain up to 10%.

The collapse of Argentine stocks

In this context, the majority of the shares listed through ADRs registered significant general falls, above 10%, in the context of the sustained impact of the paralysis of economic activity due to the coronavirus pandemic.

Of the total of the nineteen Argentine companies listed in the ADRs panel, eighteen showed a negative behavior and the role of Irsa was the most affected, with losses of 13.3%; followed by Cresud, with a collapse of 10.7%; Grupo Financiero Galicia, 10.1%; YPF, 9.5%; Central Puerto and Corporación América, 8.2%; and Banco Francés with a 8.1% drop.

They also operated with a negative sign, Banco Macro with a fall of 7.4%; Transportadora Gas del Sur, 6.3%; and Banco Supervielle, 6.1%.

Not all were low: Mercado Libre was on the rise, registering a 3.6% rise.

The situation of Argentine stocks was only part of what really happened in the market. The companies with the most weight in the main US stock indices were the ones that led to these falls due to the impulse of the economic crisis generated by the covid-19.

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