Massa to Face Milei in Argentine Presidential Runoff, Markets Wary of Increased Spending

Incumbent candidate Sergio Massa did better than expected and will face libertarian Javier Milei in a presidential runoff on November 19.

Markets may perform poorly in the short-term as investors were hoping for a runoff between Bullrich and Milei.

Massa will likely increase spending to try to win the election, worsening Argentina's fiscal situation and high inflation.

Attention will turn to policy announcements by Massa and Milei and any potential cabinet appointments.

With reserves low, Argentina faces currency and financial pressures that could be exacerbated by the election.