Argentina stocks and U.S.-listed ETFs rise sharply as Milei's party wins big in midterm elections

[Argentina flag with sun on white stripe in on a blue field]
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Argentina's financial markets were in a jubilant mood after President Javier Milei's party scored huge wins in the midterm legislative elections, as voters backed the leader's overhaul of the economy through austerity measures and free market reforms.

The country's stocks reacted positively to the news. The win also assured Argentina of the U.S. financial bailout deal. President Donald Trump had said that the U.S. financial support for Argentina hinged on the election outcome.

Trump had warned earlier that while he wanted to help, he would pull the deal if President Javier Milei does not win the October 26 midterm elections. Earlier in October, the U.S. Treasury finalized a $20B currency swap framework with Argentina and directly purchased Argentine pesos (ARS:USD [https://seekingalpha.com/symbol/ARS:USD])

After the win Argentina-related stocks jumped in U.S. premarket trading hours. The stocks include Banco BBVA Argentina (NYSE:BBAR [https://seekingalpha.com/symbol/BBAR]) +35.4%, Grupo Financiero Galicia (NASDAQ:GGAL [https://seekingalpha.com/symbol/GGAL]) +35%, Grupo Supervielle (NYSE:SUPV [https://seekingalpha.com/symbol/SUPV]) +29%, Banco Macro (NYSE:BMA [https://seekingalpha.com/symbol/BMA]) +34%, YPF S.A. (NYSE:YPF [https://seekingalpha.com/symbol/YPF]) +25%, Pampa Energía (NYSE:PAM [https://seekingalpha.com/symbol/PAM]) +25%, and Cresud S.A.C.I.F. y A. (NASDAQ:CRESY [https://seekingalpha.com/symbol/CRESY]) +15.2%.

The country's benchmark, the S&P MERVAL Index (MERVAL [https://seekingalpha.com/symbol/MERVAL]) has been down 17.7% since the start of the year and the Global X MSCI Argentina ETF (NYSEARCA:ARGT [https://seekingalpha.com/symbol/ARGT]), which provides U.S. investors with exposure to Argentine equities, soared 18.2% in U.S. premarket trade and was down 10.2% year to date.

Argentina's economy has been battling challenges for the past few months. In April, the International Monetary Fund reached a preliminary agreement with Argentina on a $20 billion bailout.

Sunday's elections [https://seekingalpha.com/news/4508489-argentina-midterm-elections-milei-party-victory] were for half of the seats in the Chamber of Deputies and one-third of the Senate seats. Milei's party, La Libertad Avanza scored about 41% of votes, while the left-leaning opposition Peronist coalition secured around 31%.

The rise in Argentina-related stocks comes over a month [https://seekingalpha.com/news/4493059-argentina-stocks-and-us-listed-etf-tumble-amid-rising-political-uncertainty] after the country's domestic stocks and U.S.-listed ETFs saw a downturn amid a strained political environment as Milei's ruling party had lost a key provincial election in the Buenos Aires province.

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* Argentine midterms: Milei's party wins big as voters back his economic overhaul [https://seekingalpha.com/news/4508489-argentina-midterm-elections-milei-party-victory]
* Argentina wards off ratings downgrade after U.S. bailout deal, Fitch says [https://seekingalpha.com/news/4507539-argentina-wards-off-ratings-downgrade-after-us-bailout-deal-fitch-says]