In the Buenos Aires stock market, meanwhile, the leading S&P Merval index lost 3% to 92,076 units, after marking an intraday historical maximum level of 97,024.42 points last week.
After knowing the electoral results, President Alberto Fernández said that “in the first week of December we will send a bill that specifies the multi-year economic program.”
Beyond statements, the market awaits definitions. With the ratification of Martin Guzman and the announcement of the sending of a Law that sets the goals in the economic plane, Investors will carefully await how the government will seek to negotiate to find the minimum consensus in order to stabilize the economy.
The rebound in inflation and the loss of reserves as a result of uncertainty, made a Central Bank maneuver that seems to hold out until the new income from Dollars in December. The announcement of the bill that involves the entire political arc would be a good sign taken by the markets that await concrete measures.
Political reaction played a key role. The government sought through its final speech to calm down and not get emboldened, it knew that an euphoric speech for better or for worse could harm the day after. So he sought a moderate tone and stop the storm.
What do you expect with these results? That after a clear message at the polls to the ruling party of short-term news. They recognize that the current dynamics is not sustainable in the long term and that is why solutions are needed to avoid that Argentina is complicated in terms of reserves and increased inflation. The market recognizes that further polarization after the results would only make things worse.