Argentine markets slumped as Macri’s conservative digests landslide defeat

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Argentine markets slumped as Macri’s conservative digests landslide defeat

On Monday, the 12th of August 2019, a stack of Argentine stocks alongside Argentine Peso pummeled after conservative president Mauricio Macri had stomached a landslide defeat on Sunday’s (August 11th) election. In point of fact, as media reports revealed earlier last week that the extent of a post-election market crash in Argentina might depend on the scale of defeat Mauricio Macri would likely to face, followed by a much wider-than-anticipated defeat of Macri on Sunday (August 11th), the Latin American nation’s main stock index had witnessed its worst intra-day plunge ever, while Argentine peso had breached its all-time record low.

Aside from that, after opposition candidate Alberto Fernandez, husband of former Argentine president Cristina Fernandez who held the office between 2007-2015, had witnessed a landslide triumph on Sunday’s (August 11th) primary election, a businessmen’s favorite, Macri’s chance of getting re-elected in October this year had witnessed a heavy header and stoked possibilities of a populist intervention in Argentine market, which in effect prompted a flight-to-safety response amid investors.

Aside from an unfathomable faltering of its stock indices, Argentine peso had wrapped up Monday’s (August 12th) market with a nosedive of 17 percent to 53 Argentine peso per US dollar after falling as much as 22 percent to a record 61.99 Argentine Peso/ US dollar during morning Argentine-trading hours.

Nonetheless, Argentine Central bank had to spend $50 million from its own reserve to offset further devaluation of its currency. Addressing to a raft of ridicules circulating around Argentina’s money market, an emerging market analyst at UBS Global Wealth Management, Alejo Czerwonko said, “What is unclear is exactly how Fernandez and Kirchner intend to conduct economic policy if they come to power. ”