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October 27, 2010 at 11:59 AM
Néstor Kirchner, former president of Argentina who brought the country out of its 2001 economic collapse, died of a heart attack on Wednesday at the age of 60. His wife, current Argentine President Cristina Fernández, had succeeded him to the office three years ago.
Both husband and wife had been hostile to investors with what the Financial Times described as “their power-centric style and nationalist, heterodox policies.” And the markets’ reaction to his death demonstrated that quite clearly; Argentine stocks took off in the U.S. and Galicia, the country’s biggest consumer lender, rose by 26% in New York “as investors looked forward to a new era for business in the South American country.” The Argentine markets were closed for the 2010 census.
In the FT report, Douglas Smith, head of Latin America research at Standard Chartered, said, “The bottom line is near-term volatility, but I would say this is somewhat positive for the bonds and the economic outlook because it boosts the chance of the opposition which is more fiscally responsible and market friendly.”
