international markets return to operate in negative

For the holiday in Argentina, the Buenos Aires Stock Exchange raffled this Monday a new day of marked global volatility in the markets, but the country risk indicator jumped 4.8% to a new maximum in fifteen years.

Oil prices fell again this Monday and the value of the Brent barrel of the North Sea, the benchmark for Argentina, was below $ 26, continuing at the lowest level since May 2003.

The barrel of Brent crude, which is listed on the London Electronic Market (ICE), was trading at $ 25.74 with a rise of 4.56% for delivery in May, according to the Investing stock panel.

Meanwhile, the barrel of WTI crude, which is listed on the New York futures market (Nymex), was trading at $ 22.48 a barrel, down 0.66% for delivery in April.

Crude prices changed minute by minute in both markets as volatility had gripped the stocks.

Argentina’s country risk indicator, prepared by the US bank JP Morgan, rose 4.8% to 4,259 points, a new all-time high since June 2005 after the first debt restructuring of this century.

On Wall Street, the Dow 30 index fell 2.39%; the S&P 500 was down 2.24%; and the Nasdaq lost 0.99%; the German DAX fell 2.67%; the British FTSE 100 fell 3.95%; the French CAC 40 lost 3.33%; among others.

Among the shares of Argentine companies listed in New York, Banco Francés fell 4.5%; the Macro fell 2.1%; and Central Puerto 3.1%.

The G20 finance ministers and central bank presidents met on Monday via videoconference to analyze and seek coordinated solutions to respond to Covid-19.

The German DAX fell 2.40%; the British FTSE 100 fell 2.84%; the French CAC 40 lost 2.46%; among others.

The Japanese Nikkei 225 closed the day with a rise of 2.02%.

The US Federal Reserve convened a third emergency meeting on Monday to combat the economic impact of the coronavirus and unveiled a series of unprecedented measures that would expand the efforts of the North American central bank to calm corporate debt markets.

With the financial turmoil on and on since February, the Fed expanded the scope of its asset purchases under a renewed quantitative easing program and announced four new measures to support private stocks and bonds, after a 35% loss in cumulative average since last February 12.

For the ADRs of Argentine companies that are traded on the New York stock exchanges, the trend is not good either, with red numbers for the largest number of species. YPF is trading slightly lower, at $ 3.48.

The loss of the online tourist services company Despegar.com stands out, which in this context of crisis for the sector, and also for the commercial airlines, sank up to 35% at noon, to $ 4.56.

Last week the leading online travel company in Latin America announced the withdrawal of its projections for the first quarter of 2020, provided at the end of last year, as the scope and duration of COVID-19 and the impact it will have on The travel industry is difficult to predict at the moment.

As many countries issued travel and flight restrictions to mitigate the consequences of the spread of the coronavirus, the tourism market deteriorated more than anticipated at the time.

The stimuli are not enough to stop the fall

The Fed said it would buy an unlimited number of Treasury bills and mortgage-backed securities to support the financial market, in addition to acquiring assets “in the amounts necessary” to sustain the valuations and the effective transmission of monetary policy.

The Fed had previously established a limit of USD 700,000 million for the purchase of assets and the promotion of loan programs for USD 300,000 million to support companies affected by restrictions that affect North American economic activity.

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