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Argentine markets exploded with optimism on Monday after President Javier Milei, a staunch free-market advocate and close ally of Donald Trump, scored a resounding victory in the nation’s midterm elections.
The result triggered one of Argentina’s strongest market rallies in a decade – stocks soared, international bonds climbed over 15 cents, and the peso strengthened more than 10% against the U.S. dollar in a single session.

A Result That Shook the Markets
Milei’s party, La Libertad Avanza, secured 41.5% of the vote in Buenos Aires Province, defeating the long-dominant Peronist coalition, which received 40.8%.

Nationally, Milei exceeded 40% support, signaling that voters back his free-market reforms and aggressive austerity agenda.
The election was also a key milestone tied to a $40 billion U.S. support package, which includes a $20 billion central-bank swap line and a $20 billion credit line contingent on the continuation of Milei’s reforms.
Market reactions were immediate:

🔹 International dollar bonds jumped 10–15 cents, with the 2038 maturity climbing to 74 cents on the dollar.

🔹 Argentine stocks traded in the U.S. surged as much as 50%.

🔹 The Global X MSCI Argentina ETF gained 22%, erasing earlier-year losses.

🔹 The peso logged its biggest single-day rally in three decades.

La Libertad Avanza Gains Political Power
The victory gave Milei a stronger foothold in Congress.

“His win was far, far bigger than anyone expected,” said Thierry Larose of Vontobel Asset Management.

“From merely surviving politically, he’s now in a powerful position to form tactical alliances and push through reforms once deemed impossible.”
Christine Reed of Ninety One noted that Milei’s victory speech struck a conciliatory tone, signaling openness to cooperate with opposition lawmakers — a critical step for passing structural economic reforms.

Peso Rebounds and Sparks Currency Reform Talk
After months of extreme volatility and a 25% drop following the lifting of currency controls, the Argentine peso finally bounced back.

Its newfound strength has reignited debate over exchange-rate reform.
“The election outcome could start a positive cycle,” said Carmen Altenkirch of Aviva Investors.

“Locals may begin selling dollars again instead of hoarding them — a key step toward stabilizing the economy.”
According to Graham Stock of RBC BlueBay Asset Management, Argentina now faces a turning point as foreign investors regain confidence:
“After these elections, investors are more convinced Milei can maintain his reform agenda and attract capital ahead of the 2027 general elections.”

Trump’s Shadow and Global Significance
Milei has long been dubbed the ‘Trump of South America’ — echoing Trump’s anti-bureaucracy stance, pro-dollar policies, and tough position on China.

Trump personally congratulated him on X, writing:
“Javier is a fighter for freedom and truth. Argentina is back on the path to liberty!”

Outlook: Argentina Enters a New Era
With political risk reduced and investor confidence surging, Milei may accelerate one of the most ambitious economic restructuring plans in modern Argentine history.

Foreign capital is returning, the peso is stabilizing, and the markets are experiencing a renaissance few thought possible.
If the reforms hold, Argentina could once again become a symbol of economic revival — this time under the leadership of a president the world is watching as closely as his American mentor.


#argentina , #Milei , #TRUMP , #GlobalMarkets , #GlobalMarkets

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