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.

Argentina markets gave a pretty strong reaction on Monday after President Javier Milei and his La Libertad Avanza party secured a major midterm

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 vote in Sunday’s midterms came as the United States finalized an up to $40 billion bailout package for Argentina, an effort to boost President Javier Milei.

The rally reflected optimism that President Javier Milei’s win will shore up support from the Trump administration.