Wall Street crashed, unease returns to global markets

The Bag New York tied its third straight decline, as its major stock indices plummeted more than 2%. Tech stocks, which a few weeks ago pushed Wall Street to record highs, are now pulling down. The S&P 500 Index fell 2.8%, the Dow Jones fell 2.2% and the Nasdaq lost 4.1% .╠

Tech stocks had flown on Wall Street, also boosted by intense activity in the stock options market of big tech companies. The operation allows financial investors to generate huge profits on a security, without having to pay for its entire value. The condition is that the stock continues to rise. But if the trend reverses, the decline is quick and steep. That’s what happened last week, when Apple shares fell 3.1% .╠

The flight to quality caused the 10-year Treasury yield to close at 0.67%, up from 0.72% on Friday.

The energy sector shares also posted heavy losses, due to the fall in crude prices fell. The US crude price (WTI) fell $ 3.01 to close at $ 36.76 per barrel. The Brent blend lost $ 2.23 to $ 39.78 a barrel. This drop came after Saudi Arabia cut its October sales prices and Covid 19 cases rebounded several times. countries.

Coronavirus cases are increasing in India, Britain, Spain, and various parts of the United States. The rebound could weaken the global economic recovery and affect fuel demand.

Argentine stocks listed on Wall Street managed to weather the collapse of the US markets. On the Buenos Aires Stock Exchange, for its part, the S&P Merval index lost only 0.5%, after falling at the beginning of the round to almost 3% .╠

After Argentina managed to restructure foreign debt for $ 66,000 million and securities under local legislation for another $ 41,000 million, investors are expectant about the price of the new bonds. Those securities began trading in full yesterday, due to the fact that the Labor Day holiday in the US was celebrated on Monday. They debuted in New York with a yield above 11%. The exit rate was slightly above the 10% projection made at the time of closing the deal with creditors. Analysts estimated that it will settle towards that theoretical value.

The volume traded in bonds in the local market was less than a figure equivalent to US $ 2,000 million, in a context in which three-quarters of the operations were concentrated in the brand new Bond 2030. This last security traded at 6,320 pesos, with a rise of 0.8% in the local market compared to the day before. In New York, meanwhile, the global 2030 had a yield of 11.5%, while in 2038 it was 12%, and the title 2046 , 12.5%. For its part, the 2035 bond had a yield of 11.6%.

“The new titles at the moment have a limited volume,” said Joaquín Candia, analyst at Rava Bursátil.╠

The positive position of the country’s yield curve had not occurred since mid-2018, when the market turned around and the risk of default became increasingly real. The bonds in dollars under local law operated with lower yields than those issued under foreign law, since they moved with rates between 10.5% and 11.5%, showing a lower risk than international bonds.

The country risk prepared by the JP Morgan bank rose 33 units, to 2,150 basis points, pending a reconfiguration of the index with the new titles


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