Argentine stocks and bonds closed lower on Tuesday, April 7, aligning with international markets hit by Donald Trump's ultimatum to Iran. Wall Street saw losses, and oil prices topped US$110 per barrel. Country risk rose to 615 basis points per J.P. Morgan.
The S&P Merval in pesos dropped 1.1% to 2,972,629.43 points. In the leader panel, Aluar (-5.2%), Edenor (-3.6%), and Sociedad Comercial del Plata (-3.5%) led the losses. Argentine ADRs on Wall Street also declined, with Cresud (-2.5%), IRSA (-2.4%), Grupo Supervielle (-2.1%), and Edenor (-2.1%).
In fixed income, Bonar 2029 and 2035 lost 0.1%, though Globals rose up to 0.5% at the long end. Country risk rose to 615 basis points per J.P. Morgan, though another report closed it at 610. The official dollar held at $1,365/$1,415 at Banco Nación, wholesale at $1,392, and blue at $1,380/$1,400.
Markets reacted to the expiration of Donald Trump's ultimatum to Iran, due on April 7 at 8 p.m. Eastern Time. Trump demanded a diplomatic agreement, ceasefire, and reopening of the Strait of Hormuz, threatening strikes on power plants and bridges. On Truth Social, he posted: "El martes será el Día de la Central Eléctrica y el Día del Puente, todo en uno, en Irán. ¡No habrá nada igual! ¡Abran el maldito estrecho, malditos locos, o vivirán en el infierno! ¡Ya verán! Alabado sea Alá. Presidente DONALD, J. TRUMP".
Iran rejected negotiations under ultimatums and submitted a 15-point plan deemed "excessive and illogical" by Washington. Wall Street fell: S&P 500 -0.74%, Nasdaq -1.05%, Dow Jones -0.66%.
