Economy|Financial MarketsArgentine assets cheer Milei party’s election victory with massive rallyAfter a decisive win by La Libertad Avanza (LLA), international bonds and local stocks jumped while the peso strengthened against the US dollar.
Argentina's financial markets experienced significant gains following President Javier Milei's party's victory in the midterm elections on Sun, Oct 26, 2025. This election outcome is seen as vital for maintaining economic reforms and securing financial…
Argentina's financial markets experienced significant gains following President Javier Milei's party's victory in the midterm elections on Sun, Oct 26, 2025. This election outcome is seen as vital for maintaining economic reforms and securing financial support from the United States.
On Mon, Oct 27, 2025, international bonds increased by 9 to 13 cents each, local stock prices surged by over 20%, and the peso appreciated approximately 6% against the US dollar.
The official results indicate strong voter support for Milei's free-market policies and austerity measures, which have contributed to a notable decrease in inflation since his administration began nearly two years ago.
The US has committed $40 billion in support, consisting of a $20 billion central bank swap line and a potential $20 billion loan facility, contingent on Milei's reform agenda.
This election outcome is seen as vital for maintaining economic reforms and securing financial support from the United States.
La Libertad Avanza (LLA), Milei's party, received 41.5% of the vote in Buenos Aires province, slightly surpassing the opposition Peronist coalition, which garnered 40.8%. Nationally, LLA secured over 40% of the vote, exceeding expectations.
The country's international dollar bonds are approaching historical highs, with the 2038 maturity increasing by 13 cents to 73 cents on the US dollar. Argentine companies listed in the US saw a substantial rise, with financial stocks climbing up to 50% and the Global X MSCI Argentina ETF increasing by 20%.
The peso initially strengthened by 13% to 1,320 per dollar and ended the day 5.8% stronger at 1,410 per dollar.
Argentina's assets have been volatile, with significant fluctuations in the peso's value and local stock benchmarks. However, the strengthened legislative position of Milei's party is expected to encourage more foreign investment by reducing electoral risks and bolstering confidence in reform-oriented policies.
Foreign exchange reforms remain a topic of discussion, with potential adjustments to facilitate the accumulation of reserves. Investors are optimistic about the potential for a stronger currency and increased financial stability.
Based on reporting by Al Jazeera.
