Trump-Backed Milei Triumphs: Stocks Soar 25%, Peso Jumps 10% !
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 a critical step for passing structural economic reforms.
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