Bearish market and weak context

By Carlos Fontana
Columnist for Ámbito Financiero

A negative result sealed from the very beginning with a trading session which was fatal all over the world, especially for main markets. Therefore, the weak context of the local stock exchange and the performance of Merval indexes went unnoticed.

The sharp fall of Nasdaq and its effect on the Dow Jones index talk about an unforeseeable state of affairs: the doses of rate cuts do not work but this seems to be the moment to start asking Greenspan another cut.

While the North's epicentre was weak, Europe was losing in all its fronts. Obviously, without internal stimuli either, the week went down gradually and, yesterday, posted a fall of 1.5% with the collapse of blue chips.

After the session, the Stock was eager to see some maximum authorities on the floor, expecting that, for instance, Cavallo brought some scoop about what he would announce on Tuesday. Everything helps to inspire hopes, meanwhile...

General weakness

With trading volume amounting to 19 million pesos for local stocks and 5.5 million for Cedears, the market had to endure a strong wave of selling orders.

The maximum level reached did not go over the level of Wednesday and the minimum stood in 438 points, by the end of the session. Of all the bad days, without makeup, this was the worst by far...