August 13, 2019

Anna Murray 

Argentine held primary vote on August 11, and its currency peso, stocks and bonds were sharply braking down the next day. It’s the first time that peso, stocks and bonds collapsed at the same time after South America economic crisis of 2001 and debt default.

It seemed that, in October’s presidential election, voters support Mr. Fernández, the opposition candidate who won the election in most areas of Argentine, instead of the market-friendly President Mauricio Macri’ austerity measures. Mr. Alberto Fernández gained about 47.66% of the votes, most of which were from impoverished Argentines. His winning percentage was much higher than President Macri’s 32%.

Mr. Fernández’ political partner, Mrs. Cristina Fernández de Kirchner, the former two-term president from 2007 to 2015, is considered of left-wing populism.  Investors are afraid that when Mrs. Kirchner owns power again, the country will be back to a harsh interventionist economy.  

Photo:Webshot.