Argentina's Merval index has experienced a significant boost, reaching record highs following the election of Javier Milei as president. Despite a downturn in the region, weakening US dollar, and positive economic data, the Merval index has outperformed other Latin American stocks. Investors are optimistic about Milei's commitment to closing the central bank and his pro-free-market stance, which has generated confidence in the Argentine economy. Additionally, stable oil prices and anticipation of the upcoming OPEC+ meeting have provided further support to the market. Milei's presidency is seen as a catalyst for economic growth and market enthusiasm.
The Buenos Aires Stock Exchange has seen a substantial increase in value since Milei's election, reflecting the positive sentiment among investors. Milei's plan for privatizations has been well-received by the financial markets, contributing to the market's upward trajectory.
Even Pope Francis, whom Milei had insulted in the past, has congratulated the new president, signaling a potential reconciliation between the two.
Argentina's Consumer Price Index increased 4.2% in May compared to April, the lowest monthly inflation in two years. The approval of President Javier Milei's economic deregulation law in the Senate led to a surge in Argentine stocks on Wall Street and a decrease in sovereign risk. The law aims to deregulate the economy, make the labor market more flexible, and open doors for multinational investments in energy, mining, agribusiness, and technology. The energy sector, especially the gas and oil reserves of Vaca Muerta, is expected to benefit the most. The mining industry is confident that Milei will support open-pit mining despite strong resistance from citizens. The technology sector is also a focus for future growth, with Milei aiming to turn Argentina into a regional tech hub. The approval of the bill grants Milei legislative powers for one year and signals governability and negotiation skills. However, the challenge of keeping prices down as the economy recovers remains. [87eb3096]