The announcement by President Javier Milei in a nationwide broadcast regarding the guidelines of the 2026 Budget had an immediate effect on the markets: Argentine bonds, stocks, and ADRs recorded significant increases, while the Central Bank's reserves rose again. The positive reception from investors confirms support for the economic direction chosen by the libertarian administration, based on fiscal discipline, monetary order, and the historic reduction of public spending.
The dollar-denominated securities, which had been the hardest hit, led the reaction: Globales and Bonares climbed as much as 6.8%, with AE38 leading the session. On average, hard dollar bonds rebounded 4.5%, driving country risk down below 1,200 basis points, after reaching a high of 1,231 units on Monday.
"On the positive side, bonds ended the session with strong demand, which suggests to us that the rebound could continue tomorrow", highlighted Nicolás Cappella, analyst at Grupo IEB.
The S&P Merval index also joined the optimism, with a 2.3% increase that brought it to 1,788,269 points. On Wall Street, Argentine company ADRs rose as much as 5%, with Transportadora Gas del Sur leading the way. "Despite some points that raise concerns, the reception of the presidential message was positive, because the openness to political dialogue and attention to social demands were valued", stated economist Gustavo Ber, from Estudio Ber.
In his speech, Milei reaffirmed that the 2026 Budget contemplates the lowest level of public spending in three decades, with a strong adjustment that prohibits Treasury financing via Central Bank issuance. At the same time, it guarantees increases above inflation in key areas: retirements (+5%), health (+17%), education (+8%), and disability pensions (+5%). The president emphasized concrete achievements: lower inflation, reduced poverty, and a fiscal surplus achieved without resorting to default, something not seen in more than 120 years.
