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Analysis-US Political Support Tilts Latam Market Risk, Investors Say

By Rodrigo Campos
NEW YORK (Reuters) -Latin America’s political map is tilting to the right just as Washington signals deeper support for ideologically aligned governments, a convergence that investors say is starting to reshape how risk is priced across the region’s assets.
Conservative leaders already govern Argentina, Ecuador and El Salvador, with Bolivia joining the market-friendly column this month. A right-wing bloc came close to winning simple majorities in the Chilean Congress earlier this month, with Jose Antonio Kast tipped to become the country’s first far-right president since the Pinochet dictatorship.
Conservative candidates are also likely to win presidential elections in Peru and Colombia next year. This leads up to the upcoming departure of leftist Gustavo Petro, who cannot run for reelection in Colombia, and whose outspoken criticism of U.S. policies has made him one of President Donald Trump’s top bogeymen in the region.
Amid the burst of support for Argentina’s government during the October midterms, U.S. Treasury Secretary Scott Bessent said there was a

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