Argentina's massive stock market and currency sell-off triggers a risk of contagion, analysts warn.
Argentina's President Mauricio Macri lost by a far greater margin that expected in primary elections on Sunday, casting serious doubt over the incumbent's re-election chances in October.
"We are going to get a spill over contagion of some sort," Andrea Iannelli, investment director at Fidelity International, told CNBC's "Squawk Box Europe" on Tuesday. The surprise result set off a shockwave in financial markets, with the peso closing 15% weaker at 53.5 per U.S. dollar and Argentina'sIt marked the second-biggest one day slump anywhere since 1950, Reuters reported.
Emerging markets are likely to benefit from lower borrowing costs stateside because it gives them welcome breathing space to cut rates and get back on a path to higher growth.At a news conference Monday, Macri said his coalition would reverse the "bad primary election result" despite a surprisingly strong performance by the opposition.
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