Traders Cheer On Argentina as Milei Win Underpins Austerity Push

Investors welcomed congressional approval of President Javier Milei’s omnibus bill, saying it showed he can push through contentious reforms many see as key to getting Argentina’s economy back on track.

Bloomberg
First Published13 Jun 2024, 11:01 PM IST
Traders Cheer On Argentina as Milei Win Underpins Austerity Push
Traders Cheer On Argentina as Milei Win Underpins Austerity Push

(Bloomberg) -- Investors welcomed congressional approval of President Javier Milei’s omnibus bill, saying it showed he can push through contentious reforms many see as key to getting Argentina’s economy back on track.

The president won just enough support to advance his landmark austerity package in the Senate early Thursday morning, following weeks of horse-trading and pushback from opposition lawmakers.

The vote confirmed many investors’ base case scenario, sending sovereign bonds higher. US-listed shares of Argentine companies and an exchange-traded fund that tracks the country’s stocks also climbed. 

Still, some see additional gains as limited since much of the reform was already priced in, and the Senate’s rejection of a provision that would expand income tax triggered concerns over Milei’s ability to eliminate fiscal deficits. A cobweb of capital controls and a weaker peso in parallel markets may also hinder foreign investment, they said. 

Graham Stock, senior EM sovereign strategist at RBC BlueBay Asset Management:

Kate Moreton, analyst at Columbia Threadneedle:

Citigroup Inc. strategists led by Donato Guarino:

Stuart Sclater-Booth, portfolio manager for emerging-markets debt at Stone Harbor Investment Partners:

David Austerweil, deputy portfolio manager for emerging-markets at Van Eck Associates Corp.: 

More stories like this are available on bloomberg.com

©2024 Bloomberg L.P.

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First Published:13 Jun 2024, 11:01 PM IST
HomeNewsTraders Cheer On Argentina as Milei Win Underpins Austerity Push

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