Political uncertainty reigns in Argentina and Chile

The victory for Peronist Alberto Fernández in Argentina’s presidential election on Sunday provoked a small negative shock in local financial markets. And the fact that he has done little to soothe investors’ fears over the country’s debt crisis suggests that further falls in asset prices lie in store. Elsewhere, protests in Chile continued this week, despite the government’s attempts to make concessions, and there is growing evidence that the disruptions will take a toll on growth in Q4.