Argentine stocks rose 6%, yet country risk is climbing

Argentine stocks rebounded by as much as 6% on Wall Street, while the Merval index gained 4.4% in peso terms. This rebound comes from one-year lows; however, the rise in country risk indicates that distrust regarding Argentine debt has not dissipated.

The rebound in stocks may present a short-term opportunity, but the increase in country risk serves as a cautionary signal: Argentine bonds remain under pressure, which limits the sustainability of these gains.