Global investors are on edge ahead of Argentina’s legislative elections as President Javier Milei’s economic-reform agenda hangs in the balance. Milei’s party needs to secure one-third of Congress seats for a potential market bounce-back, with concerns over downside risk if expectations are not met. The outcome will determine Milei’s ability to push through his controversial agenda and maintain support in the legislature. The US has provided financial support to stabilize the peso, but doubts linger over the currency’s overvaluation and potential devaluation post-election. Traders are cautious, expecting Milei to secure a low 30s percentage at the polls, with uncertainty surrounding the future of economic reforms and US support. Investors are advised to avoid significant directional bets before the election, opting for a cautious approach to navigate the market volatility.

Read more at Yahoo Finance: Wall Street is wary of being burned by the ‘Milei trade’