ON TUESDAY, LOCAL MARKETS TRADED STEADILY following the strong gains of the prior session. Dollar-denominated sovereigns closed with slight declines, while financial and official exchange rates edged higher and the BCRA continued buying in the FX market, albeit at a slower pace than in prior months. The main drag came from equities, which fell 3.0% in dollar terms, posting a correction after the sharp rally registered the previous week.

DOLLAR-DENOMINATED SOVEREIGNS TRADED STABLY ON TUESDAY following last week's rally. The overall index fell 0.1%, underperforming emerging market debt, with greater losses in Bonares (−0.2%), while Globales remained flat. As a result, country risk rose to 436 bps. Bopreal bonds also declined 0.2%.

ARS-DENOMINATED DEBT POSTED A CORRECTION AT THE START OF THE WEEK: CER instruments led the declines, falling 0.3%, followed by fixed-rate bonds, which shed 0.2%. At the other end, Dual bonds were flat and dollar-linked bonds stood out with a gain of 0.3%, in line with the move in the official exchange rate.

THE OFFICIAL EXCHANGE RATE ROSE 0.1% AGAIN, accumulating a gain of 1.6% for the month. Financial rates moved in the same direction: both the MEP and the CCL rose 0.1%, closing at ARS 1,454.2 and ARS 1,497 respectively, with the spread narrowing to 2.9%. Meanwhile, the BCRA purchased USD 79M, bringing accumulated purchases to USD 952M in June and USD 10,708M year-to-date. Gross reserves rose USD 236M to close at USD 47,665M.

THE MERVAL FELL 2.9% IN PESOS AND 3.0% IN DOLLAR TERMS, closing at USD 2,175, in a session of profit-taking following Thursday's rally. Declines were broad-based: energy — weighed down by falling crude prices — utilities, and materials led the losses, while only consumer staples managed a gain. Among individual stocks, YPF (−8.1%), TGS (−4.9%), and TGN (−4.5%) led the declines, while Mirgor (+2.7%), IRSA (+1.3%), and Banco de Valores (+0.3%) were the only names in positive territory. Among ADRs, AdecoAgro (−8.4%), Cresud (−4.1%), and Edenor (−3.8%) led the losses; MercadoLibre (+1.3%), Globant (+0.8%), and Vista Energy (+0.1%) were the exceptions.