- Argentine stocks and ETFs surged following President Javier Milei’s party victory in midterm elections.
- YPF shares increased by 24%, while Banco BBVA Argentina U.S. shares climbed 35%.
- Milei’s party secured 41% of the vote, winning 64 seats in the lower house and 13 in the Senate.
- The election result eased concerns about Argentina’s international financial support.
- U.S. officials expressed optimism for continued economic reforms and investment in Argentina.
Argentine financial markets rallied after President Javier Milei’s party won the country’s closely watched midterm election. Major moves included a 24% increase in YPF, Argentina’s state-run oil firm, and a 35% jump in Banco BBVA Argentina’s U.S. depository shares. The Global X MSCI Argentina ETF also rose by more than 17% in premarket trading.
According to a Bloomberg News report, with over 90% of votes counted, Milei’s party received 41%, taking 64 of the 127 open lower house seats and 13 of 24 Senate seats.
The election’s outcome helped reduce uncertainty around Argentina’s access to international support. Argentina owes billions to lenders such as the International Monetary Fund (IMF). Prior to the vote, the U.S. government arranged a $20 billion swap line with Argentina’s central bank to help stabilize its currency, and discussions were also underway with private banks for an additional $20 billion in financing.
President Donald Trump congratulated Milei, calling the result a major victory. “That was a big win. Not only did he win, he won by a lot.” Secretary of the Treasury Scott Bessent noted, “Argentina is a vital ally in Latin America. These results are a clear example that the Trump Administration’s policy of peace through economic strength is working.” He added, “We look forward to continued steps toward economic freedom that will attract private sector investment and job creators, bringing prosperity to the Argentine people.”
Retail investor sentiment towards YPF and Banco BBVA Argentina appeared strongly positive in the aftermath, as reflected in trading interest and message volume. The high stakes of the election were underscored by the earlier warning that a loss for Milei’s party might have threatened future U.S. support, which is viewed as crucial for Argentina’s financial recovery.
