Argentina Milei, Macri resume electoral talks

The opening of negotiations also highlights how electoral weakness is reshaping alliances in Buenos Aires. Macri’s Propuesta Republicana, or PRO, still holds influence in parts of Argentina’s political and business establishment, while Milei needs allies to reduce legislative friction and avoid a repeat of recent political standoffs that have complicated governance.

Markets have been watching the political calendar closely. Argentina-focused ETF ARGT has climbed to $91.13 from $72.90 on Oct. 9, while Brazilian-linked EWW and energy heavyweight YPF have also held firmer levels, underscoring how investors are still willing to back selective exposure to Latin America when policy risk appears manageable.

The peso and broader country-risk sentiment remain central to that equation. Adalytica’s US dollar trade signals show neutral sentiment but elevated awareness, while its global stability gauge still sits in “extreme greed,” suggesting investors are attuned to political deals that could preserve reform momentum — and quick to punish any breakdown.

For Milei, a pact with Macri could help convert fragile legislative support into a more durable governing coalition. For investors, the next catalyst is whether the talks produce an explicit electoral deal or a looser parliamentary arrangement that keeps the reform program alive without formal unity.