Argentine Stocks, Peso Nosedive After Surprise Vote
Following Sunday’s stunning defeat of President Mauricio Macri and his coalition in primary elections, Argentina’s currency tumbled around 25 percent against the dollar after trading opened, while its main stock index sank more than 30 percent. The Peronist opposition, led by Alberto Fernández, snatched 48 percent of the vote to the more market-friendly Macri’s 32 percent in an election that portends the ascendancy of a populist government in October’s presidential poll.
Why the negative reaction? Argentina’s investors are antsy because Peronists advocate greater state control of the economy — and because ex-President Cristina Fernández de Kirchner, currently under indictment for corruption, is Fernández’s running mate.