The Argentine financial markets experienced a day of marked euphoria on Monday, driven by the explicit support from the Donald Trump administration, through the United States Treasury, for President Javier Milei's economic program and by the confirmation of new local measures regarding export taxes on grains and meat.
The reactions were felt in both sovereign bonds and stocks, as well as in the dollar exchange rate, generating a shift in the negative perception that had dominated much of September.
Dollar-denominated government bonds posted gains of up to 12% among the Globals under foreign law traded on Wall Street. Global 2041 (GD41) and Global 2046 (GD46) were among the most in-demand securities, reflecting renewed investor interest. Meanwhile, Bonares issued under Argentine law performed even more strongly: Bonar 2038 (AE38) and Bonar 2029 (AL29) climbed as much as 18% during the session.
EN VIVO: el presidente Javier Milei participa de la Expo EFI
This bond rally had a direct impact on country risk as measured by JP Morgan. The EMBI+ Argentina index plummeted by 351 points, settling at 1,105 units. This represented a 24.1% drop after having reached 1,516 basis points last Friday.
The improvement was not limited to the debt segment. Among Argentine stocks traded on Wall Street through ADRs, there were also significant advances, in some cases of up to 23.6%, led mainly by banking stocks. In the local market, the S&P Merval index of the Buenos Aires Stock Exchange followed the upward trend, with a 6.3% increase to reach 1,790,000 points.
Meanwhile, there was a marked decline in the various dollar exchange rates. The wholesale rate stood at $1,408, the official dollar at Banco Nación was $1,430, and market exchange rates fell below $1,500. In percentage terms, the drop in exchange rates ranged between 3% and 9%, easing currency tensions.
Javier Milei y Donald Trump.
A day of announcements
The main driver of this positive reaction was the message from the US Treasury Secretary, Scott Bessent, who stated: “We are willing to do whatever is necessary to support Argentina,” and announced that financial assistance will be provided to Milei's government.
Another factor contributing to the optimistic climate was the confirmation that export taxes on agricultural and meat products will be reduced to zero until October 31, clearing doubts in the agribusiness sector and reinforcing expectations of foreign currency inflows in the short term.
The day made clear the impact that Washington's support can have on investor confidence. After weeks of uncertainty, markets welcomed the alignment between the White House and the Casa Rosada, giving momentum to Milei's reform program and reinforcing expectations of financial stability for the remainder of the year.
