Summary
Argentina's financial markets, including bonds, stocks, and currency, saw significant gains after President Javier Milei's party won a midterm election. This victory is expected to support ongoing economic reforms and maintain U.S. financial support. The election results showed strong voter support for Milei’s policies, leading to positive investor reactions.
Key Facts
- President Javier Milei's party won a midterm election in Argentina with over 40% of the national vote.
- Argentina’s international bonds increased by 9 to 13 cents each.
- Local stocks in Argentina rose by more than 20%.
- The Argentine peso strengthened by roughly 6% against the U.S. dollar.
- The U.S. has pledged up to $40 billion to back Milei's reform agenda, including a $20 billion swap line and a potential $20 billion loan.
- Milei’s party received 41.5% of the vote in Buenos Aires province, a historic Peronist stronghold.
- U.S.-listed shares of Argentine companies surged, with financial shares up by as much as 50%.
- Argentina's economic situation had been challenging, with the peso weakening 25% since mid-April until the recent rally.
