Sunday’s midterm elections in Argentina produced a stunning victory for President Javier Milei’s La Libertad Avanza party. The party doubled its representation in Congress, meaning Milei’s party and allies secured at least one-third of the seats in both chambers — the critical threshold to preserve the president’s veto power and defend his sweeping decrees.

Argentine stocks rose sharply Monday following a stronger than expected result from President Javier Milei’s La Libertad Avanza party in legislative elections Sunday. The Global X MSCI Argentina ETF rose 17% in before-hours trading.

Karina Milei managed to make the purple party the only one running in all 24 electoral districts, even at the cost of arm-wrestling with allies and governors. The dispersion of Peronism has sent alarm-bells ringing – election night will open up a combat over the vote count.

The right-wing ruling party Libertad Avanza (LLA) is projected to secure a landslide victory in Argentina’s midterm parliamentary elections held on the 26th. This election served as a “midterm evaluation” of President Javier Milei’s free-market reforms and stringent austerity policies implemented since his government took office in December 2023.

The Argentine peso fell against the US dollar on Tuesday, wiping out almost all of its gains since an electoral landslide for Javier Milei’s party boosted the country’s markets. The currency slid 2 per cent to 1,