Argentina country risk exceeds 500 points amid recession fears

Argentina's financial markets are facing significant pressure as the country's risk index, calculated by JP Morgan, has climbed above the 500-point threshold, reaching levels near 511. This increase is driven by global uncertainty, specifically regarding US Federal Reserve interest rate policies and rising Treasury yields, alongside local economic concerns.

Argentine sovereign bonds and ADRs listed on Wall Street have seen widespread declines. Major companies like Mercado Libre and Globant experienced notable drops, although some energy firms such as YPF and Tenaris showed resilience. The local Merval index also faced downward pressure, reflecting a cautious investor sentiment.

Simultaneously, economic indicators suggest growing domestic instability. The Leading Index from the Universidad Torcuato Di Tella reports that the probability of Argentina entering a recession has risen to 82% for the coming months, interrupting a previous downward trend in recessionary risk. This follows a period of high volatility in the country's economic activity and central bank reserves.