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[BUSINESS] · Argentina, Brazil · 73 sources

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Argentina markets rebound following Flávio Bolsonaro's Brazilian election performance

Argentine financial markets have seen a significant rebound in stocks and bonds, driven by positive developments in Brazil. Following Flávio Bolsonaro's strong performance in the first round of the Brazilian presidential election, Argentine assets in Wall Street and local markets rose, with the S&P Merval increasing by 3.7% and sovereign bonds in dollars gaining an average of 2.1%. Consequently, the country risk index dropped below 600 basis points.

Economy Minister Luis Caputo has addressed the current economic state, rejecting claims of a recession. He noted that while the economy is growing at a slower pace—with a monthly trend-cycle rate of approximately 0.2%—it has maintained positive growth for 29 consecutive months. Caputo attributed the deceleration to external shocks, such as high energy costs and US interest rates, as well as domestic political uncertainty.

The World Bank has adjusted its growth projections for Argentina, now estimating an expansion of 2.1% in 2026 and 3% in 2027. Despite the downward revision from previous estimates, the organization noted that Argentina is poised to see three consecutive years of growth for the first time in nearly two decades, supported by fiscal consolidation and structural reforms.

Politically, the potential for a Flávio Bolsonaro presidency in Brazil is viewed by the Argentine government as an opportunity to improve bilateral cooperation and political affinity, potentially strengthening the regional presence of conservative leadership.

Entities

Argentina · Brazil · Flávio Bolsonaro · JP Morgan · JPMorgan · Javier Milei · Jorge García Cuerva · Jorge Macri · Luis Caputo · Lula da Silva · S&P Merval · World Bank

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Sources

Lula en su laberinto [questiondigital.com]