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Argentine markets move amid political, economic and health questions

BUENOS AIRES, May 4 (Reuters) – Markets in Latin America’s third largest economy closed unevenly on Tuesday, amid a strong second wave of coronavirus, political tensions in the government cabinet in a year of legislative elections, and close to a debt maturity with the Paris Club that could leave the country in a new default.

“The climate of uncertainty due to political, health and economic noises keeps investors away, and so they only seek to deploy defensive strategies,” said Gustavo Ber, economist at Estudio Ber.

Argentine Government sources made it known that President Alberto Fernández would travel to Europe next week to seek to reschedule the 2.9 billion dollars to be paid to the Paris Club. In turn, the Minister of Economy was in dialogue with his counterpart from Japan.

Meanwhile, the Supreme Court of Justice ruled on Tuesday in favor of the Government of the City of Buenos Aires (CABA) and guaranteed face-to-face classes in schools, against a decree by Fernández that had ordered their suspension due to the significant growth of infections. of COVID-19.

* The S&P Merval Buenos Aires stock index fell 0.44%, to a provisional closing of 48,655.51 units with limited liquidity and in line with the weakness of external markets due to an increase in risk aversion.

* “This week, special attention should be paid to the Merval in dollars, where it will probably test again the support of 300 points, which despite trying to break several times in recent months, always knew how to recover to return above 310 points” said Portfolio Personal Inversiones.

* Bonds in the local over-the-counter segment ended up balanced in a market with low business due to investor apathy despite juicy returns.

* “Argentine dollar bonds continue at very low prices and yields above 20%,” Banco Piano said in a report.

* The Ministry of Economy announced for Wednesday a tender for letters with the aim of obtaining financing for about 9,000 million pesos.

* The country risk measured by the JP.Morgan bank rose three units to 1,565 basis points towards the close of the local market (2000 GMT).

* In the exchange market, the wholesale peso lost a slight 0.04% to 93.71 / 93.72 per dollar, with the intervention of the central bank, which managed to take about 150 million dollars from the market, commented operators.

* “Local investors persist in staying focused on the exchange rate, which is once again marking increases and gives the feeling that they are beginning to lose some of the stability seen to date,” said Fernando Staropoli of Rava Bursatil.

* In the alternative segments, the domestic currency traded at 157.20 units in the ‘CCL’ stock market, at 154 in the so-called ‘MEP dollar’, at 154 units in the informal segment.

(Reporting by Walter Bianchi; Additional reporting by Hernán Nessi; Edited by Jorge Otaola)

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