Argentina's Market Surge: Milei's Legislative Win and Economic Dreams

Wall Street rallied as President Javier Milei secured a legislative victory with Argentina's Senate passing his economic reforms. Although parts of his sweeping proposals were watered down, markets responded positively. The legislation now awaits final approval in Congress' lower house, marking a significant step in Milei's ambitious economic agenda.

Wall Street rallied on Thursday as Argentina's President Javier Milei headed to Italy for the Group of Seven summit. Milei celebrated his first legislative win after the Senate passed sweeping measures to slash state spending and enhance his executive powers.

Market confidence surged on the news. Argentine sovereign bond yields increased by 3.5 per cent, and the country's risk index dropped over 6 per cent at market opening. Despite some opposition-led modifications and a contentious Senate debate, Milei hailed the outcome as a 'triumph'.

The legislation aims to address Argentina's severe economic crisis and will now return to the lower house for final approval. Key measures include privatizing state firms and incentivizing foreign investment, signaling a pivotal shift in Argentina's economic landscape.

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