Local uncertainty and international volatility: why country risk is consolidating above 600 basis points

On Thursday, Argentina's country risk index reached 640 basis points, remaining consistently above the 600-point threshold. This upward trend is driven by a combination of local uncertainty and rising international interest rates, which have exerted downward pressure on dollar-denominated bonds. The current valuation levels diminish the immediate prospects for the country to regain access to international credit markets.

Simultaneously, global market volatility impacted European equities, as the Spanish stock market declined by 0.28% to fall below the 19,200-point mark. This downturn was primarily attributed to losses within the artificial intelligence sector and shifts in sovereign bond yields, reflecting broader international financial instability.