"Argentina's markets tumbled on Monday, with the peso currency at a historic low, after a heavy defeat for President Javier Milei's party at the hands of the Peronist opposition at local elections stoked worries about the government's ability to implement its economic reform agenda. The IMF did not respond to questions on whether this vote result would change its relationship with the Milei administration or alter the program."
"Argentina's main equity index had dropped around 20% since the government corruption scandal broke, its international government bonds have sold off and pressure on the recently unpegged peso forced authorities to start intervening in the FX market. "The result was much worse than the market expected - Milei took quite a big beating so now he has to come up with something," said Viktor Szabo, portfolio manager at Aberdeen Investments."
Markets in Argentina plunged and the peso reached a historic low after President Javier Milei's party suffered a heavy election defeat to the Peronist opposition, undermining confidence in the reform agenda. Argentina's main equity index had dropped around 20% since a government corruption scandal, international government bonds sold off, and pressure on the recently unpegged peso forced authorities to intervene in the FX market. The IMF did not answer whether the vote would change its relationship with the Milei administration or alter the program. A portfolio manager warned that the policy mix adopted in coming days will be pivotal for medium-term inflation expectations and the stabilization program's success.
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