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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
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 6 SOURCES] Flávio Bolsonaro won the first round of the Brazilian presidential election with 47.2% of the votes. diariopampero.com · www.losprimeros.tv · notasdeactualidad.com.ar · www.politicargentina.com
- [● 7 SOURCES] Argentine ADRs in Wall Street saw increases of up to 8%. diariopampero.com · www.losprimeros.tv · notasdeactualidad.com.ar · www.politicargentina.com · prensalibreonline.com.ar
- [● 5 SOURCES] Argentina's country risk index fell to 614 basis points. diariopampero.com · notasdeactualidad.com.ar · www.politicargentina.com
- [● 2 SOURCES] The trend-cycle indicator shows a monthly growth rate of approximately 0.2%. www.diario3.com.ar · lapioneradeclorinda.com
- [● 4 SOURCES] Argentina is not in a recession, though economic growth has slowed. www.diario3.com.ar · lapioneradeclorinda.com · www.losprimeros.tv
- [○ 1 SOURCE] The City of Buenos Aires will issue US$ 150 million in local debt for public works.
- [● 11 SOURCES] The S&P Merval index rose by approximately 3.7% in pesos. diariopampero.com · www.losprimeros.tv · notasdeactualidad.com.ar · www.politicargentina.com · prensalibreonline.com.ar · +3 more
- [● 3 SOURCES] External shocks, including high energy costs and US Federal Reserve interest rates, are slowing regional growth. www.diario3.com.ar · lapioneradeclorinda.com
- [● 2 SOURCES] Argentina is not in a recession despite a slowdown in economic activity. www.diario3.com.ar · lapioneradeclorinda.com
- [● 6 SOURCES] Argentina's country risk index fell to 599-614 basis points. diariopampero.com · www.losprimeros.tv · notasdeactualidad.com.ar · www.expresdiario.com.ar
- [● 2 SOURCES] A victory for Flávio Bolsonaro could strengthen political affinity and cooperation between Argentina and Brazil. diariopanorama.com · www.labrujula24.com
- [● 3 SOURCES] The monthly trend-cycle growth rate is approximately 0.2%. www.diario3.com.ar · lapioneradeclorinda.com · www.labrujula24.com