- Shares of YPF, the state-owned oil firm, jumped 24% while Banco BBVA Argentina’s U.S. depository shares soared 35%. The Global X MSCI Argentina ETF also rose above 17%.
- According to a report, Milei’s party received 41% of the vote, winning 64 of the 127 seats up for grabs in the lower house of Congress and 13 of the 24 open Senate seats.
- “We look forward to continued steps toward economic freedom that will attract private sector investment and job creators, bringing prosperity to the Argentine people.” – Scott Bessent.
Argentine stocks and exchange-traded funds rallied in premarket trading on Monday after President Javier Milei’s party emerged victorious in a closely watched midterm election.
Shares of YPF, the state-owned oil firm, jumped 24% while Banco BBVA Argentina’s U.S. depository shares soared 35%. The Global X MSCI Argentina ETF also rose above 17%.
Why Were The Elections Important?
According to a Bloomberg News report, with more than 90% of ballots counted, Milei’s party received 41% of the vote, winning 64 of the 127 seats up for grabs in the lower house of Congress and 13 of the 24 open Senate seats.
Milei’s victory over his Peronist opposition helped ease concerns about future U.S. support for the South American country, which owes billions to lenders such as the IMF. Before the vote, the Trump administration agreed to a $20 billion swap line with Argentina’s central bank to help stabilize the volatile Argentine peso. The White House was also in talks with a group of private banks for an additional $20 billion financing package.
The stakes were high as Trump had threatened to withdraw support if Milei’s party suffered a loss, which would have put a roadblock to Milei’s economic agenda.
What Is Retail Thinking?
Retail sentiment on Stocktwits about YPF was in the ‘bullish’ territory at the time of writing, while traders were ‘extremely bullish’ about Banco BBVA Argentina.
What Did The US Say?
President Trump was quick to congratulate Milei, an ideological ally of the Republican President. “That was a big win,” Trump said. “Not only did he win, he won by a lot.”
Treasury Secretary Scott Bessent, who led the efforts to deliver on the $20 billion swap, also hailed the victory. “Argentina is a vital ally in Latin America. These results are a clear example that the Trump Administration’s policy of peace through economic strength is working,” he said.
“We look forward to continued steps toward economic freedom that will attract private sector investment and job creators, bringing prosperity to the Argentine people.”
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