Particle.news
Download on the App Store
12 ARTICLES
·
3d ago

Argentine Markets Slump After Peronist Sweep in Buenos Aires

Investors read the provincial result as raising political-fiscal risk for Milei's reform program.

A trader works on the floor at the New York Stock Exchange (NYSE) in New York, US, on Monday, Aug. 18, 2025. Wall Street saw a quiet start to a key Federal Reserve week, with geopolitics coming into play as Ukrainian President Volodymyr Zelenskiy and his European allies get ready to meet with Donald Trump to a potential peace deal with Russia. Photographer: Michael Nagle/Bloomberg
Image
Image
Image

Overview

  • Argentine ADRs in New York fell up to about 15% in premarket trading, with bank and energy shares leading the losses.
  • Sovereign bonds sank as much as roughly 7.8% and the country risk premium pushed above 1,000 points.
  • The peso traded near the top of the official band around ARS 1,460 on bank screens and in crypto-dollar markets.
  • President Javier Milei conceded the provincial setback as Economy Minister Luis Caputo stated that fiscal, monetary and FX policy will remain unchanged.
  • J.P. Morgan had warned this outcome would likely require heavier BCRA intervention, pressure reserves and keep real rates high, with analysts now bracing for continued volatility.