Argentine financial markets rally after election

Argentina's financial markets opened higher today after opposition candidate Mauricio Macri's surprisingly strong showing in presidential elections set up a second vote next month.

Buenos Aires stocls were climbing with Merval benchmark index 4.9 percent up. Banco Macro rose 18.5 percent, Banco Francés 12.5 percent, Grupo Financiero Galicia 12.1 percent and Pampa Energía 10.3 percent.

An Argentine equity exchange traded fund (ETF) listed in Berlin also rose to its highest in more than two months.

"The markets in Argentina are going to open stronger because Macri has done much better than expected," said Jan Dehn at fund manager Ashmore in London.

Financial and energy shares also rallied in Wall Street. Banco Macro surged 24.3 percent; Grupo Financiero Galicia 20.6 percent; and Banco Francés 18.2 percent.

Shares of Pampa Energía climbed 16.9 percent, Transportadora de Gas del Sur 15.5 percent, Telecom 14.4 percent and YPF 13.7 percent.

Argentina's defaulted dollar Discount bonds, which mature in 2033, rose five points to a bid price of 110.3 to yield 7.36% this morning.

They led a broad-based rally across Argentina assets, with other international bonds bid some 3-4 points higher at the open.

With almost 97 percent of polling stations declared, the pro-business mayor of Buenos Aires had won 34.4 percent of the vote, enough to prevent the candidate of Argentina's ruling party, Daniel Scioli, from claiming an outright victory.