Argentina's peso falls 15% after surprise election results spook investors
Voters, in preliminary polls, rejected President Mauricio Macri's austere economic policies, raising questions about his chances of re-election. The surprise results affected global markets
 "“We are going to reverse this bad election and we are going to reach the second round… Every election is a message and we understand it” Mauricio Macri Argentina president")
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“We are going to reverse this bad election and we are going to reach the second round… Every election is a message and we understand it” Mauricio Macri Argentina president
A coalition backing Opposition candidate Alberto Fernandez — whose running mate is former president Cristina Fernandez — led by a wider-than-expected 14 percentage points with 47.1 per cent of votes, with fourth-fifths of ballots counted.
The presidential election is due to take place in October
Brutal response
The peso collapsed 15 per cent (as much as 25 per cent intraday), equities crumbled 48 per cent in dollar terms — the second biggest one-day slump anywhere since 1950 — and the bond market crashed, with a 100-year bond that investors had recently gobbled up tumbling 20 per cent as fears of yet another government default spiked
Credit-default swaps showed traders were pricing in a 75 per cent chance that Argentina will suspend debt payments in the next five years
Asian and European stocks tumbled early on Tuesday as they followed their US counterparts, which had slipped in Monday trade. However, European markets recovered and US markets opened on a positive note. EM currencies, including Indian rupee, Turkish liraand South African rand fell
The presidential election is due to take place in October
Brutal response
The peso collapsed 15 per cent (as much as 25 per cent intraday), equities crumbled 48 per cent in dollar terms — the second biggest one-day slump anywhere since 1950 — and the bond market crashed, with a 100-year bond that investors had recently gobbled up tumbling 20 per cent as fears of yet another government default spiked
Credit-default swaps showed traders were pricing in a 75 per cent chance that Argentina will suspend debt payments in the next five years
Asian and European stocks tumbled early on Tuesday as they followed their US counterparts, which had slipped in Monday trade. However, European markets recovered and US markets opened on a positive note. EM currencies, including Indian rupee, Turkish liraand South African rand fell
Topics : Argentina