Argentina Markets Rally on Milei’s Midterm Victory and U.S. Backing
Argentine assets surged after President Javier Milei's party secured a pivotal midterm victory, unlocking a $40 billion U.S. support package tied to economic reforms. Bonds soared 10–15 cents, equities jumped over 20%, and the peso gained 10% against the dollar—marking one of its strongest sessions in modern history.
La Libertad Avanza captured 41.5% in the Peronist stronghold of Buenos Aires province, with national approval for Milei's austerity measures crossing 40%. The mandate signals voter endorsement of free-market policies despite short-term pain, as slowing inflation validates the approach.
Market reactions were instantaneous: Argentina's 2038 dollar bonds rebounded to 74 cents, while U.S.-listed Argentine bank stocks rallied up to 50%. The outcome ensures continuity for reforms critical to maintaining the U.S. lifeline, including a $20 billion swap line and potential loan facility.
