Argentine markets responded positively to the victory of far-right candidate Javier Milei on Wall Street, with traders in neighboring countries watching closely. The Buenos Aires Stock Exchange was closed for Sovereignty Day, halting domestic trading for the day, yet global markets reflected optimism about Milei’s win. Early in the trading session, energy stocks led the gains: YPF rose by about 36 percent in the first portion of trading, Transportadora de Gas del Sur climbed around 22 percent, and Pampa Energía gained roughly 7 percent. In the banking sector, Grupo Financiero Galicia moved up about 23 percent, Banco Macro by 19 percent, Cresud by 21 percent, BBVA Argentina by 16 percent, and Grupo Supervielle by 12 percent. Other notable movers included cement producer Loma Negra up about 12 percent, steel producer Tenaris up around 1.8 percent, and Telecom Argentina rising roughly 4 percent.
With banks and exchange houses closed due to the holiday, traders anticipated a rebalancing of activities once markets reopen on the following trading day. Since the news of Milei’s victory emerged late Sunday, the Argentine peso and related assets have tracked higher amid expectations for policy shifts. Sovereign bonds traded internationally also strengthened, with several issues showing gains above one percentage point. The GD46 bond, maturing in 23 years, led gains with roughly 6 to 7 percent, followed by GD35 and GD41 registering notable increases.
Investors are weighing the prospect of a more flexible exchange-rate regime and potential changes to dollarization policy against the backdrop of a cautious domestic environment. Analysts note that Milei’s victory surprised many observers who had anticipated a transition period under a different economic team. The degree of policy clarity and the speed of implementation will be key drivers for markets as the new administration prepares to outline its approach to fiscal discipline and stabilization.
Industry experts observe that Milei enters office without a clear majority in Congress, which could complicate rapid policy enactment. Deloitte analysts and other market observers highlight the importance of assembling a credible economic team and maintaining a credible stabilization plan. They also emphasize that the road ahead will require careful negotiation with lawmakers and practical steps to address limited international reserves and fiscal deficits while ensuring social protections remain targeted and fiscally responsible.
Privatization and dollarization ideas and early signals
From the outset, Milei signaled a willingness to pursue privatization of state assets and a reform-focused economic agenda. In early remarks to national radio, he suggested that many sectors could move toward private management where feasible, while acknowledging that certain assets would need restructuring before privatization. He indicated that state enterprises would undergo a reorganization process to determine the most efficient governance structures.
During his campaign and into his first days in office, Milei highlighted several headline priorities such as dollarization and reforming the central bank. He also advocated reducing welfare programs and pension-related costs, paired with tighter controls on public-sector wages and a sharper focus on fiscal normalization. Experts caution that while decisive actions can anchor expectations, the practical path will depend on legislative support and the ability to implement changes without destabilizing the economy.
Analysts project Milei may adopt a pragmatic stance, potentially moderating some proposals in response to real-world constraints. Key items to monitor include the pace and scope of fiscal adjustments and the development of a credible stabilization plan. In light of limited international reserves and existing deficits, the risk level remains elevated, and markets will look for signs of a coherent government program and a steady cabinet formation. Observers will also be watching for external support signals and the coordination with coalition partners as the administration outlines its first-year roadmap.