By Rodrigo Campos and Libby George
NEW YORK/LONDON, Jan 8 (Reuters) – U.S. President Donald Trump’s muscular moves in Venezuela and Argentina are adding to a rightward shift across Latin America in a pivotal election year, making foreign cash more likely to flow to the region as investors anticipate market-friendly reforms.
The U.S. removal of President Nicolas Maduro over the weekend sent Venezuela’s defaulted debt soaring, while Trump’s gamble last year to bolster Argentina’s Javier Milei – an ideological ally – with a financial backstop of up to $40 billion paid off when Milei’s party did well in crucial midterm elections.
In a different era, Trump’s interventions may have sparked more of a backlash against brazen foreign meddling. And while not everyone in Latin America has welcomed his moves, reaction has been relatively muted at a time of a broader rightward political shift that investors say will boost the region’s financial assets as they anticipate market-friendly changes.
Analysis-Investors Bullish on Latin America After US Move on Venezuela’s Maduro
