Chilean Markets Are Tumbling
- Stocks posted worst rout in six years after first-round vote
- Pinera garnered less support than forecast in Sunday election
Sebastian Pinera registers to cast a ballot at a polling station in Santiago, Chile, on Nov. 19, 2017.
Photographer: Cristobal Olivares/BloombergThis article is for subscribers only.
Chilean stocks posted their worst rout in six years and the peso tumbled after surprise election results dashed expectations billionaire Sebastian Pinera would easily win next month’s presidential run-off.
Investors had taken it for granted that Pinera was cruising to victory, and pushed the benchmark IPSA equity index to a record in the weeks before the first-round vote. Traders were wagering that the tax cuts the candidate pledged would revive investment, growth and corporate profit. Their confidence was dashed Sunday after results showed Pinera garnered far fewer votes than forecast and a new left-wing alliance surged in the polls.