The recent Buenos Aires election loss for Javier Milei delivered a noticeable shock to financial markets across Argentina. Following early vote counts indicating Milei’s defeat, the Buenos Aires Stock Exchange experienced a sharp downturn, with the benchmark Merval index plunging by over 4% during midday trading. Investor sentiment shifted rapidly as market participants reassessed the political landscape, fearing increased uncertainty and a potential rollback of Milei’s libertarian economic promises. The Peso also suffered, depreciating against the U.S. dollar by nearly 1.8% in early trading hours.

Market analysts highlighted several key reactions to the election outcome:

  • Equity sell-off: Technology and financial stocks saw the largest declines as risk aversion…