(ARGENTINA) JUST IN: Stock markets and its currency have both plunged after Conservative Argentine President Mauricio Macri suffered a shock defeat in primary elections on Sunday in early trading stocks fell 32% while Peso slumped 25% against the U.S. dollar #AceNewsDesk reports

#AceNewsReport – Aug.13: In early trading, Argentina’s main Merval stock index fell 32%, while the peso slumped 25% against the dollar: Some of the country’s most traded stocks have lost one third of their value in just two hours: Mr Macri’s loss has sparked fears of a change to the market-friendly regime: There have been big drops in companies such as cement producer Loma Negra – down around 50% – and electricity distributor Pampa Energia which is off around 30%: The presidential elections take place in two months’ time BBC News reported.

Getty Image: By Daniel Gallas BBC South America business correspondent

Cristina Fernández de Kirchner and AlbertoAFP Image: Alberto Fernández’s running mate is ex-President Cristina Fernández: His running mate is former president Cristina Fernández de Kirchner, who presided over an administration remembered for a high degree of protectionism and heavy state intervention in the economy.

Analysis by Daniel Gallas, BBC South America Business Correspondent: Argentina is a country that has suffered with all sorts of economic problems that are taught in textbooks: But even by its standards, this market meltdown is unprecedented: In just two hours, a third of the Merval index (which accounts for the most traded stocks in the country) was wiped out in value: Investors are now pushing the “sell” button, as many believe it will be impossible for President Mauricio Macri to win the upcoming election in October: If he loses, this will be the end of a pro-business agenda to save Argentina’s economy that has been implemented since Mr Macri came to power in 2015, which includes IMF loans, austerity measures and the end of capital controls: Sunday’s primaries were seen as vindication for “Kirchnerismo” which have for years denounced Mr Macri’s plan as ineffective. The country is in recession and still suffering with inflation and poverty: There are still two more months to go until the election – but few believe there will be surprises as big as this one coming up again: Edward Glossop, from the London-based consultancy Capital Economics, said Mr Macri’s government could pull out all the stops to try to shore up popular support: This could include easing budget curbs imposed as part of Argentina’s agreement with the International Monetary Fund: “An outright loosening of the purse strings is possible. The IMF would probably turn a blind eye to this, since it is in its interest for President Macri to secure re-election,” he said, but added: “We doubt that these efforts would be enough to change voter perception.”…….Argentina is currently in a recession and posted 22% inflation for the first half of the year, one of the highest rates globally.

Poverty now affects 32% of the population…………..

Stocks hit session lows, with the Dow lower by more than 300 points https://t.co/6HrUBIfkSu pic.twitter.com/uQrG4objyH
— CNBC Now (@CNBCnow) August 12, 2019:

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