The United States' protectionist measures and the jump in the dollar's value hit local assets hard. The S&P Merval fell 2% and ADRs suffered losses of up to 4%. The market is closely monitoring the IMF disbursement.
Financial markets are experiencing a day of intense tension. Argentine stocks and bonds fell as much as 4% this Friday, dragged down by the global climate of uncertainty generated by the new tariffs imposed by Donald Trump and the growing exchange rate volatility in the country.
The collapse began after the White House announced: starting August 7, the United States will apply a new tariff system to nearly 70 economies, with rates reaching up to 50%. The goal, according to President Trump, is to respond to"unfair trade practices."
The measure will particularly affect strategic sectors such as ceramics, steel, aluminum, the automotive industry, and agricultural products. Among the most affected countries are Canada, with a 35% tariff, and Brazil, which will face a 50% tariff due to disputes over digital policies. Severe consequences are also anticipated for the Spanish ceramics industry, which could lose up to €100 million.
This international context hit Argentine assets hard. The S&P Merval index fell 2% to 2,273,359.810 points. The most affected leading stocks were Sociedad Comercial del Plata (-3.6%), BBVA (-3.1%), and Metrogas (-3%). Meanwhile, ADRs also traded sharply: BBVA (-4%), Grupo Supervielle (-3.9%), and Pampa Energía (-3.7%).
Local exchange rate pressure was also felt in the bond market. Dollar-denominated bonds registered widespread declines: the Bonar 2035 fell 1.8% and the Bonar 2041 fell 1.6%.
Amid the tension, the International Monetary Fund's Board of Directors approved the first review of the Extended Facility (EFF) agreement on Thursday, authorizing a disbursement of $2 billion. Although Argentina failed to meet its net reserve accumulation target—with a $4 billion deficit—the organization praised the fiscal progress and noted that key performance criteria were met.
"The IMF statement suggests that the Treasury has implemented corrective measures to move closer to the reserves target, with an increased pace of purchases. The disbursement will take place on Monday," explained a report by Max Capital.
The market remains attentive to the Central Bank's next moves, the pace of foreign exchange intervention, and how the international landscape will evolve. The combination of global uncertainty and local factors in a pre-election context is once again putting pressure on portfolios, while analysts suggest readjusting portfolios in the face of volatility.
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