Markets In Argentina Plunge After Poor Primary Showing For Incumbent President

Argentine peso after the fall provoked the growth of Bitcoin

Argentine peso after the fall provoked the growth of Bitcoin

Market sources based in Argentina said it is likely a potential left-wing government will raise export taxes, particularly on wheat and corn, to around 20%-23%.

"I think the economy will sink even more, contracting 2% this year with inflation going to 50%", Irigoyen said in a note.

"The (result of the primary) election wasn't what we were expecting", he said.

Stocks could dip between 5 per cent to 10 per cent but prompt long-term investors to enter the market as valuations fall, he said. The S&P Merval Index plummeted 48% Monday, the second-largest single-day drop in any global stock market since 1950, according to Bloomberg.

The Dow Jones Industrial Average slipped 391 points, or 1.49 per cent, to 25,896.44.

US gold futures settled down 0.2% to $1,514.1 an ounce. Spot gold added 1.1 per cent to US$1,512.51 an ounce.

The Japanese yen (JPY) rallied to its highest in over a year and a half against the United States dollar (USD) on the notion it could gain in a drawn-out Beijing-Washington trade discord.

The nagging worries about an extended US-China trade conflict - in addition to a no-deal Brexit issue - has kept Japanese currency bulls charging early Monday, while Argentina's economy was set to collapse after voters handed its leader an election beating.

U.S. long-term yields have fallen in six of the past nine sessions, reflecting investors' diminished risk appetite.

Early gains for Europe's main bourses had quickly disappeared and Wall Street futures were already in the red after Asia-Pacific had also finished lower overnight. The spread between USA and Japanese benchmark 10-year yields has shrunk to its narrowest since November 2016 this month as a result.

LONDON, Aug 13 (Reuters) - The Japanese yen remained near seven-month highs on Tuesday and the U.S. dollar supported, as investors unnerved by the Sino-U.S. trade war, protests in Hong Kong and a crash in Argentina's peso currency sought safety.

Official results showed that in the primary elections that featured 10 presidential candidates, Macri and his vice presidential running mate, Miguel Angel Pichetto, of the ruling party received just 32.08 percent of the votes, with 98.67 percent of the ballots counted, while Alberto Fernandez and his vice presidential running mate, ex-president and current Senator Cristina Fernandez, of the opposition party Frente de Todos - Front of All - garnered 47.65 percent.

The upset, widely seen as a preview of October's presidential vote, threw the doors open to the very real possibility a more protectionist government will take power come December and unravel the hard-won gains that Macri made to regain the trust of the worldwide markets.

USA and European stocks jumped, the dollar strengthened and Treasury prices rose on Tuesday after the United States said it would delay tariffs on some Chinese products, easing concerns that a protracted trade war would harm global growth.

Global benchmark Brent crude futures rose 4 cents to settle at US$58.57 a barrel while US West Texas Intermediate (WTI) futures gained 43 cents to settle at US$54.93 a barrel.